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Treasuries Move Modestly Higher Ahead Of Next Week's Fed Meeting

After turning higher over the course of the previous session, treasuries saw some further upside during trading on Friday.

Bond prices recovered from an initial drop to end the day modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down 1.6 basis points to 0.669 percent.

Treasuries continued to benefit from their appeal as a safe haven amid the recent volatility shown by stocks on Wall Street.

Stocks have shown a lack of direction over the course of the trading day on Friday following the sharp pullback seen in the previous session.

Traders may also have been looking ahead to the Federal Reserve's latest monetary policy decision scheduled for next Wednesday.

The Fed is widely expected to leave rates at near-zero levels but could make tweaks to its accompanying statement. The central bank's latest economic projections may also attract some attention.

In U.S. economic news, the Labor Department released a report showing consumer prices increased by slightly more than anticipated in the month of August.

The Labor Department said its consumer price index climbed by 0.4 percent in August after advancing by 0.6 percent for two straight months. Economists had expected consumer prices to rise by 0.3 percent.

Excluding food and energy prices, core consumer prices still rose by 0.4 percent in August following a 0.6 percent increase in July. Core consumer prices were expected to edge up by 0.2 percent.

The Fed announcement is likely to be in focus next week along with reports on industrial production, retail sales, homebuilder confidence and housing starts.

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