WASHINGTON (dpa-AFX) - After initially showing a lack of direction, treasuries moved modestly higher over the course of the trading session on Friday.
Bond prices pulled back off their best levels in late-day trading but remained in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.2 basis points to 2.829 percent.
The higher close by treasuries may partly have reflected bargain hunting after the yield on the ten-year note reached a four-year high on Thursday.
Traders also kept an eye on developments on Wall Street, with stocks seeing considerable volatility following the sell-off seen in the previous session.
On the U.S. economic front, the Commerce Department released a report showing wholesale inventories increased by more than expected in the month of December.
The Commerce Department said wholesale inventories rose by 0.4 percent in December after climbing by a revised 0.6 percent in November. Economists had expected inventories to edge up by 0.2 percent.
Economic data is likely to attract attention next week, with reports on producer and consumer prices likely to be in focus amid recent concerns about rising inflation.
Reaction to reports in retail sales, industrial production, housing starts, and homebuilder confidence may also impact trading.
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