Treasuries Close Modestly Higher Following Lackluster Session

(RTTNews) - Treasuries turned in a relatively lackluster performance during trading on Friday but managed to end the day modestly higher.

Bond prices moved to the upside in mid-day trading and hovered in positive territory going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.7 basis points to 1.615 percent.

The choppy trading seen throughout much of the session came amid a relatively quiet day in terms of U.S. economic data.

Markit released a report showing that its index of manufacturing activity edged down to 51.4 in September from 52.1 in August, although the data did not attract much attention.

The higher close by treasuries may have reflected a continued positive reaction to the Federal Reserve's decision to leave interest rates unchanged on Wednesday.

Most analysts think the decision will delay a rate hike until the Fed meeting in December, as the next meeting in November comes just days before the presidential election.

With the Fed decision now in the rearview mirror, the latest batch of U.S. economic data is likely to be in the spotlight next week.

Traders are likely to keep a close eye on reports on new home sales, durable goods orders, consumer confidence, and personal income and spending.

A number of Fed officials are also due to speak next week, including Cleveland's Loretta Mester and Kansas City's Esther George, who both voted to raise rates at the last meeting.

Bond trading could also be impacted by reaction to the results of the Treasury Department's auctions of two-year, five-year, and seven-year notes.

The Treasury plans to sell $26 billion worth of two-year notes next Monday, $34 billion worth of five-year notes next Tuesday and $28 billion worth of seven-year notes next Wednesday.