US 10Y TREASURY: more volatility ahead?The 10Y US Treasuries exhibited some higher volatility during the previous week. Nervousness prior to the release of the PCE data was evident, when yields reached their highest weekly level at 4.62%. However, as the PCE was fully in line with the market expectations, yields cooled down a bit until the level of 4,50% for one more time.
Shifts in investors sentiment will continue to be impacted by broader economic conditions and market forecasts, in line with significant policy developments. Economic data which will be posted in the week ahead are non-farm payrolls and unemployment data for May. In case of any surprises on this side, the market might react again with a new jump in Treasury yields. However, in case of no-surprises, the yields should continue their relaxation. Still, the first Fed's rate cut continues to be the major topic on financial markets for the future period.