WASHINGTON (dpa-AFX) - After seeing strength for much of the session, treasuries pulled back going into the close of trading on Friday before ending roughly flat.
Bond prices closed near the unchanged following the drop seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 2.237 percent.
The strength seen among treasuries for most of the day came amid geopolitical uncertainty ahead of the first round of voting in the French presidential election on Sunday.
Recent polls have suggested the race is too close to call amid questions about the impact of Thursday's terrorist attack that left one French police officer dead and two others wounded.
With no candidate expected to win more than 50 percent of the vote, the top two candidates will likely head to a runoff on May 7th.
However, treasuries gave back some ground after President Donald Trump indicated he would unveil his tax reform plan next week.
Trump told the Associated Press businesses and individuals will receive a 'massive tax cut' under his plan but did not provide any details.
Meanwhile, traders largely shrugged off a report from the National Association of Realtors showing that U.S. existing home sales jumped to their highest level in ten years in March.
The report said existing home sales jumped 4.4 percent to an annual rate of 5.71 million in March after slumping by 3.9 percent to a downwardly revised 5.47 million February.
Economists had expected existing home sales to climb by 2.2 percent to a rate of 5.60 million from the 5.48 million originally reported for the previous month.
With the much bigger than expected increase, existing home sales surged up to their highest level since reaching 5.79 million in February of 2007.
Next week's trading may be impacted by the results of Sunday's vote in France and whether they provide any clues about the eventual outcome of the race.
Traders are also likely to keep an eye on reports on new home sales, consumer confidence, durable goods orders, pending home sales and first quarter GDP.
Bond trading could also be impacted by reaction to the results of the Treasury Department's auctions of two-year, five-year, and seven-year notes.
The Treasury said it plans to auction $26 billion worth of two-year notes next Tuesday, $34 billion worth of five-year notes next Wednesday and $28 billion worth of seven-year notes next Thursday.
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