Treasuries Close Notably Higher Amid Worries About Greece

(RTTNews) - After closing nearly flat for two straight sessions, treasuries showed a notable move to the upside during trading on Friday.

Bond prices moved steadily higher throughout the session, ending the day firmly in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.5 basis points to 2.095 percent

With the drop on the day, the ten-year yield extended a recent downward trend, hitting its lowest closing level in a month.

The strength among treasuries reflected continued concerns about the outlook for the ongoing debt negotiations for Greece.

While Greek officials have expressed optimism about reaching an agreement with the country's international creditors, European officials have been far more pessimistic.

International Monetary Fund Managing Director Christine Lagarde told a German newspaper it is "very unlikely" a comprehensive solution will be reached in the coming days.

Lagarde also acknowledged that a Greek exit from the eurozone is a "possibility" but said it would "probably not be an end to the euro."

On the U.S. economic front, the Commerce Department recently released a report showing that economic activity in the U.S. contracted for the first time in a year in the first quarter of 2015

The report said gross domestic product fell by 0.7 percent in the first quarter compared to the previously reported 0.2 percent uptick. The drop came on the heels of a 2.2 percent increase in the fourth quarter.

The revised decrease in GDP in the first quarter was still slightly smaller than the 0.8 percent drop expected by economists.

A separate report from MNI Indicators showed an unexpected contraction in Chicago-area business activity, while the University of Michigan said consumer sentiment fell by less than previously estimated.

With the next Federal Reserve meeting in just over two weeks, the monthly employment data is likely to be in focus through next week.

As a result of the focus on the jobs report, traders may overlook key reports on personal income and spending, national manufacturing activity, and international trade.