Treasuries Regain Ground After Early Drop But Remain In The Red

(RTTNews) - After ending the previous session modestly higher, treasuries moved back to the downside during trading on Friday.

Bond prices regained ground after an early drop but remained in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.1 basis points to 1.286 percent.

With the increase on the day, the ten-year yield continued to recover after ending Monday's trading at its lowest closing level in over five months.

The lower close by treasuries came amid continued strength on Wall Street, with the Nasdaq and the S&P 500 reaching new record intraday highs.

Stocks benefited from a positive reaction to some upbeat earnings news as well as the upward momentum seen following the sell-off on Monday.

Trading activity in the bond markets was somewhat subdued, however, as traders looked ahead to next week's Federal Reserve meeting.

The Fed is widely expected to leave interest rates unchanged, but traders will be paying close attention to any comments regarding the central bank's asset purchase program.

Traders are also likely to keep an eye on some key U.S. economic data, including reports on new home sales, durable goods orders, consumer confidence, second quarter GDP and personal income and spending.

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