Treasuries Show Modest Move Back To The Upside

(RTTNews) - Following the downward move seen over the two previous sessions, treasuries showed a modest move back to the upside during trading on Friday.

Bond prices gave back some ground after an early advance but managed to remain in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.2 basis points to 4.410 percent.

The modest rebound by treasuries came as revised data released by the University of Michigan showed consumer sentiment in the U.S. improved less than previously estimated in the month of November.

The University of Michigan said its consumer sentiment index for November was downwardly revised to 71.8 from the preliminary reading of 73.0.

While the downward revision surprised economists, who had expected the reading to be upwardly revised to 73.7, the index is still above the final October reading of 70.5.

Despite the unexpected downward revision, the consumer sentiment index is also still at its highest level since hitting 77.2 in April.

"Post-election interviews were 1.3 points below the pre-election reading, moderating the improvement seen earlier in the month," said Surveys of Consumers Director Joanne Hsu.

She added, "The expectations index surged for Republicans and fell for Democrats this month, a reflection of the two groups' incongruous views of how Trump's policies will influence the economy."

With regard to inflation expectations, the University of Michigan said year-ahead inflation expectations edged down to 2.6 percent in November from 2.7 percent in October, hitting the lowest level since December 2020.

Long-run inflation expectations, on the other hand, rose to 3.2 percent in November from 3.0 percent in October. Uncertainty over long-run inflation also increased.

Trading activity may be somewhat subdued next week due to the Thanksgiving Day holiday on Thursday, although traders are still likely to keep a close eye on the latest U.S. economic news.

The Federal Reserve's preferred inflation readings are likely to be in focus, while reports on durable goods orders, new home sales and weekly jobless claims are also likely to attract attention along with the minutes of the latest Fed meeting.