US Treasuries Gain as Wholesale Inflation Unexpectedly Declines

Treasuries rose, led by short-dated notes, after a reading on wholesale inflation came in weaker than expected, cementing bets that the Federal Reserve will start to cut interest rates next week.

The yield on two-year notes, which closely track expected moves by the Fed, fell as much as four basis points to 3.52%, while the rate on benchmark 10-year notes moved three basis points lower to 4.06%.