Long-term U.S. Treasury yields are heading for their biggest weekly drops since March 2020 and last November, just two weeks after having established multi-year highs.

The rapid turnaround taking place in the bond market is being triggered by the broader view that a slowing U.S. economy will likely put an end to the Federal Reserve’s interest rate hikes and the inflation problem. Treasury yields continued to fall on Friday after a weaker-than-expected October nonfarm payrolls report triggered another round of buying in government debt.

The 30-year yield
was down 11.5 basis points at 4.705% in New York morning trading, while the 10-year yield
fell 15 basis points to around 4.518%. Both are down by around 30 basis points or more this week. The 30-year rate is on track for the biggest weekly decline since the period that ended March 6, 2020. The 10-year rate is on its way to falling this week by the most since the period that ended on Nov. 10.

The 10-year yield’s drop on Friday is on pace to be the most in one day since March 17, a week after the collapse of California’s Silicon Valley Bank.

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