U.S. government bond prices held steady on the last trading day of the quarter.
The yield on the 10-year Treasury note was little changed Friday, rising to 3.055% from 3.054% Thursday. Yields rise as bond prices fall.
The 10-year yield, which helps set borrowing costs for consumers and companies, notched its fifth consecutive quarterly climb, its longest such streak since 2013.
Yields had risen earlier in the week ahead of the Federal Reserve’s September meeting, where officials decided to raise interest rates. Some analysts said they don’t expect Treasury yields to dart much higher, despite expectations that the Fed will raise rates again this year.
“Much of the decline in bond prices has probably already happened,” said Collin Martin, fixed income strategist at the Schwab Center for Financial Research.
Political tensions in Europe kept a lid on Treasury yields on Friday, analysts said, pushing investors toward the relative safety of government debt.
Italy’s antiestablishment government widened its budget deficit for next year, putting it on track to exceed the European Union’s budget-deficit cap for the bloc’s members. Investors fled Italian bonds and stocks. Yields on 10-year Italian government bonds jolted higher Friday to 3.161%, according to Tradeweb, from 2.884% Thursday.
A man taking a photograph outside the U.S. Treasury building in Washington, D.C., in July. Photo: Andrew Harrer/Bloomberg News
The 10-year yield declined for the week, a fall potentially stemming from pensions rebalancing at the end of the quarter, according to some analysts. Wells Fargo Securities estimated that quarter-end rebalancing could push up to $20 billion out of stocks and into bonds.
Write to Gunjan Banerji at [email protected]