Treasuries Finish Choppy Trading Day Modestly Higher

(RTTNews) - After trending lower over the past few sessions, treasuries showed a lack of direction over the course of the trading day on Friday.

Bond prices bounced back and forth across the unchanged line before eventually closing modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.2 basis points to 3.728 percent.

The choppy trading on the day came as bond traders weighed the recent interest rate cut by the Federal Reserve against the possibility the central bank could engineer a soft landing for the economy.

Traders also seemed reluctant to make more significant moves as they question what will be the next catalyst for the markets now that the Fed's first rate cut is in the rearview mirror.

A lack of major U.S. economic data may have kept some traders on the sidelines ahead of the release of several key reports next week.

While the Fed has already signaled plans to continue lowering rates in the coming months, the data could still impact market sentiment.

Reports on durable goods orders, new home sales and consumer confidence are likely to attract attention next week along with a report on personal income and spending that includes the Fed's preferred inflation gauge.