The yield on the US 10-year Treasury note edged up to 4.56% on Friday, after falling by around 6bps on Thursday, with traders bracing for the key PCE inflation figures due today.

The bond market has been volatile, with a big bond sell-off seen in the beginning of the week, after 2-,5-,and 7-year auctions saw poor demand and some Fed officials reiterated a hawkish tone.

Meanwhile, a downwardly revised GDP growth and PCE prices for Q1 and a higher-than-expected initial claims number offered some relief the Fed has room to cut the interest rates this year.

Most investors now expect the Fed to lower borrowing costs once this year, most likely either in November or December.

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