Jerome Powell

The extra yield investors demand to hold 10-year notes compared with their two-year counterparts hit 73.7 basis points this week, just shy of the 2022 high touched in April.

The rally came as data showed a surge in job-cut announcements by U.S. companies, a jump in claims for unemployment benefits and a slide in job openings.

Bloomberg's dollar gauge rallied Friday morning in New York after Trump announced the post on social media. Short-term Treasury yields fell while those on longer tenors rose.

The Federal Open Market Committee voted 10-2 Wednesday to hold the benchmark federal funds rate in a range of 3.5%-3.75%.

The $69 billion sale of two-year notes was awarded at 3.580%, more than a basis point below its yield at the bidding deadline.

The dollar, Treasuries and US equities futures slid after Chair Jerome Powell said the threat of a US criminal indictment was a consequence of a disagreement over monetary policy.

The twists and turns of the U.S. economy and the artificial-intelligence boom both played a role. But much of it could be traced to the White House.

The wagers reflect the potential for monetary policy easing to gather pace after chair Jerome Powell's term ends in May.

The moves come despite Fed officials including Michael Barr voicing caution on lowering borrowing costs again in December given inflation is still above target.

While the Federal Reserve delivered a quarter-point rate reduction as expected, Powell said another by year-end is not a given.

Yields on 10-year notes rose two basis points to 3.99% after falling the previous two sessions, while monetary policy-sensitive two-year notes held steady around 3.49% Wednesday morning.

The department has been increasing the supply of bills — Treasury securities that mature in a year or less — in a way that means the federal government needs to carry a larger checking-account balance.

Treasuries have rallied since the flare-up in trade talks prompted renewed demand for U.S. government debt as a haven.

After an apparent truce, the US and China are back to making tit-for-tat trade swipes. Market participants are fretting more about the potential impact on growth than how the protectionist measures will affect inflation.

Bank reserves fell by about $21 billion to $2,999.7 trillion in the week through Sept. 24, according to Fed data released on Thursday. That's the lowest level since the week through Jan. 1.

Most economists say the solution lies in borrowing less, via some combination of lower spending and higher taxes — rather than leaning on the Fed to make borrowing cheaper.

Traders boosted wagers on a quarter-point cut next month, pricing in a roughly 85% chance of a move, up from around 65% before Powell spoke.

Traders were watching a slew of data on a bigger-than-expected increased in jobless claims and expanded manufacturing Thursday.

In minutes from the Fed's July meeting, officials highlighted the risks of inflation outweighing concerns over the labor market, which investors overlooked.

Hopes that the U.S. will reach other trade deals ahead of its self-imposed Aug. 1 deadline are mounting.