Treasury Yields, USD Fell on Rate Hike Prospect

Investors remained cautious ahead of the US employment report due Friday. Meanwhile, the mild improvement in price levels has raised doubt over the pace of Fed funds rate hike. US dollar softened against major currencies with the DXY index settling at 97.28 after initially soaring to a 1-week high of 97.78. Treasuries firm, sending yields lower. 2-year yields dropped -2 points to 1.29% while US 10-year yields were down -4 points to 2.21%.