Treasuries See Further Downside, Extending Yesterday's Pullback

(RTTNews) - Following the pullback seen in the previous session, treasuries saw some further downside during trading on Friday.

Bond prices came under pressure in early trading and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite its price, climbed 5.0 basis points to 4.239 percent.

Traders continue to cash in on recent strength in the bond market, which pushed the ten-year yield down its lowest closing level in over four months on Wednesday.

While the Federal Reserve is still widely expected to lower interest rates in September, traders may feel the recent advance by treasuries was overdone.

Overall trading activity was somewhat subdued, however, with a lack of major U.S. economic keeping some traders on the sidelines.

A report on personal income and spending in the month of June is likely to be in focus next week, as it includes readings on inflation said to be preferred by the Federal Reserve.