WASHINGTON (dpa-AFX) - Treasuries showed a strong move to the upside at the start of trading on Friday but gave back ground over the course of the session.
Bond prices pulled back well off their early highs and into negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.6 basis points to 4.148 percent after hitting a low of 4.065 percent.
The notable downturn on the day marked an extension of the volatility seen over the two previous sessions, when treasuries advanced on Wednesday only to give back ground on Thursday.
Bond trades have seemed reluctant to make more significant bets amid renewed uncertainty about the outlook for interest rates along with an uptick by the value of the U.S. dollar.
Recent comments from Federal Reserve officials as well as indications key U.S. economic data may never be released due to the government shutdown have reduced confidence the central bank will continue lowering interest rates next month.
CME Group's FedWatch Tool currently indicates the chances of another quarter point rate cut at the next Fed meeting have slumped to 45.9 percent from 66.9 percent a week ago.
The pullback on treasuries also reflected a mirror-image of stocks on Wall Street, which extended yesterday's sell-off in early trading before staging a significant recovery as the day progressed.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News