Treasuries Offset Yesterday's Rebound Ahead Of Next Week's Inflation Data
(RTTNews) - Treasuries moved to the downside during trading on Friday, offsetting the rebound seen during the previous session.
Bond prices saw modest weakness in morning trading before sliding more firmly into negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.0 basis points to 4.569 percent.
The ten-year yield offset the 3.0 basis point gain posted on Thursday, matching the more than one-month closing high set on Wednesday.
The pullback by treasuries came as traders kept an eye on the latest developments regarding the conflict in the Middle East.
In a post on Truth Social this morning, President Donald Trump claimed that Iran has asked to continue "talks" and said the U.S. has agreed to do so but reiterated his recent assertion that the ceasefire is "over."
Bond traders may also have been looking ahead to the release of some key U.S. economic data next week.
A report on consumer price inflation is due to be released next Tuesday, while a report on producer price inflation is due to be released next Wednesday.
The data could have a significant impact on the outlook for interest rates ahead of the Federal Reserve's next monetary policy meeting later this month.
CME Group's FedWatch Tool is currently indicating a 68.5 percent chance the Fed will once again leave rates unchanged but a 31.5 percent chance of a quarter point rate hike.
