Treasuries Extend Rebound Amid Weakness On Wall Street

(RTTNews) - Following the rebound seen in the previous session, treasuries showed another strong move to the upside during trading on Friday.

Bond prices moved higher early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 6.1 basis points to 1.450 percent.

With the continued decrease on the day, the ten-year yield ended the session at its lowest closing level in over three months.

The strength among treasuries came as stocks on Wall Street saw further downside, with the Dow hitting its lowest intraday levels in well over two months.

Concerns about the outlook for monetary policy continue to weigh on stocks following the Federal Reserve's announcement on Wednesday.

The Fed's forecast for two interest rates hikes in 2023 has led to speculation that the central bank will soon start tapering its asset purchases.

Fed Chair Jerome Powell said the central bank would provide "advance notice" before making any changes to its asset purchases.

The comment about providing advance notice of tapering has seemed to inspire traders to look to the relatively safe haven of treasuries, at least temporarily.

Looking ahead, next week's trading may be impacted by reaction to reports on new and existing home sales, durable goods orders and personal income and spending as well as Congressional testimony by Powell.