The 2-year rate finished at 3.608% or its lowest level since Sept. 12, 2022. Meanwhile, the 10-year yield fell to 3.643% or its lowest closing level since June 1, 2023. The 30-year rate ended at 3.954% or the lowest level since Dec. 27.

The Dow closed at a record high on Friday. Investors see more gains ahead as the Fed kicks off a new cycle of easing interest rates.

The blue chip index closed above the psychologically significant 42,000 level for the first time ever Thursday.