10-Year Treasury Note futures yields finished the session near unchanged just below 4% after a Consumer Price Index (CPI) report that was viewed as "Fed friendly." The CPI data gave the market a fully priced 25 basis point rate cut at next week's Federal Open Market Committee (FOMC) meeting. Over the last month, 10-Year yields have moved down nearly 30 basis points when including this week's lows, but they closed the day hovering near 4% and were slightly higher on the week. Volatility declined on the week and is holding just above the month-to-date October lows. Looking ahead to next week, the market is focused on the FOMC meeting and the post-meeting press conference. Also due are home prices data, which was previously postponed due to the government shutdown, and auctions, including a 2-Year, 5-Year, and 7-Year auction, as well as a 2-Year T-Note Floating Rate auction. The market is also keenly watching for the Fed's reaction to global events, inflation, and the missing jobs data.
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