U.S. Treasury debt yields jumped on Friday, taking benchmark 10-year note yields to a two-week high, after China cut interest rates for the sixth time in less than a year and helped fuel a global rally in equities.
The People's Bank of China said it was lowering its one-year benchmark bank lending rate by 25 basis points to 4.35 percent as part of China's most aggressive monetary-easing policy since the 2008-2009 global financial crisis.
Sobering economic data in the third quarter outlined the formidable challenges faced by Chinese policymakers, not least in attaining the 7 percent growth target set by the government.
China's easing announcement, coming just a day after the European Central Bank signaled it is ready to increase its stimulus measures, helped lift stock markets in Asia and Europe. The MSCI world equity index, which tracks shares in 45 nations, rose nearly 1 percent.