Traders: Inflation did not derail the September rate cut, and next week will be a very busy week

after the release of PCE data, the Fed still has a chance to cut interest rates at the meeting on September 16-17. Michael Lorizio, head of interest rate trading at Manulife Investment Management, said, "PCE has reduced the risk of a September rate cut going off track. At least from this perspective, the inflation part will not play any role in reducing the probability of a rate cut in September." Long bond yields rose on Friday as traders closed out positions ahead of the long weekend and reallocated at the end of the month. Some interest rate hedges may also impact the market, with many expecting the corporate bond market to heat up next week as many return from summer vacation. Lorizio said, "We are going to have a very busy week...the primary market and all spread product markets will fully return, especially the corporate bond market." Employment data for August will also be released next Friday, which could be crucial in determining the Fed's recent policy decisions.