US bonds slide ahead of hawkish Fed

U.S. Treasuries weakened on Friday, lifting yields to multi-week highs, as investors priced in a Federal Reserve rate cut next week but braced for signals of a shallower easing cycle than expected.

- CORRESPONDENT

The move reflected cautious sentiment, with traders reluctant to chase bonds higher amid uncertainty over the pace of the Fed's rate cuts.

Data on Friday also did not change expectations for the Fed's upcoming monetary easing. Inflation as measured by the Personal Consumption Expenditures (PCE) Price Index came in line with expectations, while U.S. consumer sentiment improved in December.