: Treasury yields fall after March PCE data as traders see slightly lower chance of Fed hike in June

Treasury yields were broadly lower in Friday morning trading, after March data pointed to a slowing annual rate of inflation in the Federal Reserve’s favorite price gauge. The 1-month T-bill rate was 4.184% as of 9:10 a.m. New York time, down 6.8 basis points from Thursday’s close of 4.252%, according to Tradeweb. Meanwhile, the policy-sensitive 2-year rate fell 4 basis points to 4.048%, based on FactSet data. The moves came as fed funds futures traders slightly boosted the likelihood of a pause by the Fed in June, to 64% versus 62% on Thursday, after policy makers deliver a widely expected quarter-point hike next Wednesday.

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