WASHINGTON (dpa-AFX) - After ending the previous session roughly flat, treasuries have shown a modest move to the downside during trading on Friday.
Bond prices saw initial strength but came under pressure in mid-morning trading and remained in the red for the rest of the day. Subsequently, the yield on the benchmark ten-yea note, which moves opposite of its price, crept up 1.1 basis points to 4.086 percent.
Treasuries moved to the upside early in the session after the Commerce Department released a report showing U.S. economic growth slowed by much more than anticipated in the fourth quarter of 2025.
The report said gross domestic product climbed by 1.4 percent in the fourth quarter after surging by 4.4 percent in the third quarter. Economists had expected GDP to jump by 2.8 percent.
A separate Commerce Department report showed an unexpected uptick in the annual rate of consumer price growth, reinforcing expectations the Federal Reserve is likely to keep interest rates on hold in the near future.
However, treasuries gave back ground after the U.S. Supreme Court struck down most of President Donald Trump's sweeping global tariffs, delivering a major blow to the president's signature economic policy.
The nation's highest court ruled in a 6-3 decision that the International Emergency Economic Powers Act, or IEEPA, does not authorize the president to impose tariffs.
However, the court's decision does not address whether the more than $130 billion in tariffs that has already been collected should be refunded, with Justice Brett Kavanaugh predicting 'that process is likely to be a 'mess.'
Trump slammed the 'deeply disappointing' decision in a length post on Truth Social and announced plans to sign an executive order imposing a new 10 percent 'global tariff.'
Following a busy week on the U.S. economic front, the economic calendar for next week is relatively quiet, although reports on consumer confidence and producer prices may still attract some attention.
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