Treasuries Manage To End Choppy Session Modestly Higher

(RTTNews) - Treasuries fluctuated over the course of the trading session on Friday but managed to end the day modestly higher.

Bond prices bounced back and forth across the unchanged line as the day progressed before finishing on the upside. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.3 basis points to 2.13 percent.

The drop on the day extended a recent downward trend by the ten-year yield, which ended the session at its lowest closing level in over two months.

The continued strength among treasuries came as stocks turned lower over the course of the trading day after seeing initial strength.

Ongoing concerns about the global economy weighed on Wall Street and increased the appeal of safe havens such as treasuries.

Meanwhile, bond traders seemed to shrug off the Labor Department's monthly jobs report, which showed much stronger than expected job growth in December.

The Labor Department said non-farm payroll employment climbed by 292,000 jobs in December compared to economist estimates for an increase of about 200,000 jobs.

The report also said employment in October and November increased by an upwardly revised 307,000 jobs and 252,000 jobs, respectively, reflecting a combined upward revision of 50,000 jobs.

Meanwhile, the unemployment rate held at a more than seven-year low of 5.0 percent in December, matching expectations.

The economic calendar is relatively quiet for much of next week, although several key reports are scheduled to be released next Friday.

Traders are likely to keep an eye on reports on retail sales, producer price inflation, industrial production, and consumer sentiment.

Bond trading could also be impacted by reaction to the Treasury Department's auctions of three-year and ten-year notes and thirty-year bonds.

The Treasury is due to sell $24 billion worth of three-year notes next Tuesday, $21 billion worth of ten-year notes next Wednesday, and $13 billion worth of thirty-year bonds next Thursday.