Treasury yields edged lower, with the 10-year nearing 4%, as data affirming labor-market weakness and remarks from Federal Reserve Governor Stephen Miran bolstered expectations for an interest-rate cut next month.

Treasuries advanced Friday as traders reacted to evidence the US government shutdown may be curtailing economic activity.

The US government sold a record $42 billion of 10-year notes Wednesday at a lower-than-anticipated yield, soothing investor nerves after a recent rout and indicating confidence that the Federal Reserve will eventually cut interest rates.

The market for wagers on the course of Federal Reserve policy shows that traders now expect the US central bank’s policy rate will peak in September, where they previously looked for it to crest in July.