Treasuries Extend Upward Move Amid Renewed Covid Concerns

Treasuries showed a notable advance during trading on Friday, extending the upward move seen over the two previous sessions.

Bond prices gave back some ground after an initial move to the upside but remained firmly positive. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.3 basis points to 1.536 percent.

The continued strength among treasuries came as traders looked to the relatively safe haven of bonds amid concerns about the impact of the fourth wave of the coronavirus pandemic sweeps across Europe.

Austria has announced a full national Covid-19 lockdown starting on Monday, while Germany has announced more restrictions on unvaccinated people.

The potential of more European countries reinstating full lockdowns has sparked worries the pandemic could once again weigh down the global economy.

Trading activity waned over the course of the session, however, as a lack of major U.S. economic data keeps some traders on the sidelines.

Reports on new and existing home sales, durable goods orders, and personal income and spending are likely to attract attention next week, although trading activity may remain somewhat subdued due to the Thanksgiving Day holiday.

Bond traders are still likely to keep an eye on the results of the Treasury Department's auctions of two-year, five-year and seven-year notes.

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