The yield on the US 10-year Treasury note fell below 4% on Friday, its lowest level in four months, ending February about 25 basis points lower, its strongest monthly performance in a year. Safe-haven demand persisted amid ongoing policy uncertainty surrounding President Trump’s administration policies on trade, heightened tensions in the Middle East, and growing concerns about the resilience of the US economy. On the data front, producer prices rose more than expected for a second consecutive month in January. Investors stepped up bets on Federal Reserve rate cuts, with a July reduction once again almost fully priced in after expectations were briefly pared back earlier in the week.
