Treasuries moved notably lower over the course of the trading day on Friday, more than offsetting the modest strength that was seen in the previous session.
After moving to the downside in early trading, bond prices remained stuck in the red throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 5.4 basis points to 1.672 percent.
With the gain, the ten-year yield more than offset the 2.4 basis point loss it posted in the previous session, although it remains stuck in the trading range seen for much of June.
The weakness among treasuries came as traders shrugged off yesterday's disappointing batch of U.S. economic data, with some traders moving their money into stocks following the sell-off that was seen on Wall Street on Thursday.
Nonetheless, uncertainty about the near-term outlook for the markets kept some traders on the sidelines, while others looked to get a head start on the weekend amid record-breaking temperatures.
While developments overseas could drive trading next week, investors are also likely to keep an eye on U.S. reports on new home sales, durable goods orders, jobless claims, and personal income and spending.
Bond trading could also be impacted by the results of the Treasury Department's auctions of two-year, five-year, and seven-year notes.
The Treasury is due to sell $35 billion worth of two-year notes next Tuesday, $35 billion worth of five-year notes next Wednesday and $29 billion worth of seven-year notes next Thursday.
by RTT Staff Writer
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