US Treasury bond yields declined moderately on Friday, while investors continue to overestimate the prospects for the Fed's monetary policy.
The yield on 10-year Treasury bonds fell by 4.6 basis points, reaching 1.788%, while the yield on 30-year bonds was 2.106% (-3.5 basis points). Meanwhile, the yield on 2-year Treasury bonds, reflecting expectations of short-term interest rates, fell by 2.9 basis points to 1.022%. Earlier this week, the yield on 10-year Treasury bonds rose above 1.9% due to concerns about the timing of the Fed's tightening policy and rising inflation.
As for the US data, today at 15:00 GMT the index of leading indicators for December will be released. The index is expected to rise by 0.8% after gaining by 1.1% in November.
Meanwhile, gradually the focus of attention of market participants is shifting to the Fed meeting, which will be held next week. According to experts' forecasts, the Fed may announce the termination of asset purchases already at the January meeting, and signal an interest rate increase in March.