After a turbulent week, U.S. Treasury yields were subdued on Friday as investors
await a key U.S. employment report for guidance on the Fed's rate path. The
10-year yield was little changed at 4.76%, up about 5bps over the past five
sessions. Early-week gains — driven by a spike in energy prices and hawkish
remarks from Fed chair KEVIN WARSH — pushed the benchmark to a three-year high;
prices later rebounded and yields eased after Fed governor WALLER on Thursday
suggested inflation may moderate. Florian Ielpo, macro head at Lombard Odier
Investment Management, said policy uncertainty is increasingly a driver of
long-term bond volatility.
