WASHINGTON (dpa-AFX) - Treasuries rebounded from recent weakness early in the session on Friday but moved back to the downside as the day progressed.
Bond prices pulled back well off their early highs and firmly into negative territory over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.1 basis points to 4.975 percent.
The ten-year yield closed higher for the fifth consecutive session, once again reaching its highest closing level since October 2023.
Treasuries initially benefitted from a sharp pullback by the price of crude oil, with U.S. crude oil futures tumbling by 2 percent on the day after skyrocketing over the past few sessions.
Crude oil futures gave back ground after the Financial Times reported Iran and Oman will meet with Gulf states next week to discuss reopening shipping through the Strait of Hormuz.
The pullback by the price of crude oil also came after the International Energy Agency downwardly revised in global oil demand forecast for the year
Buying interest waned over the course of the session, however, as traders digested the Labor Department's closely watched report on consumer price inflation in the month of August.
While the report showed consumer prices increased in line with economist estimates, core consumer prices rose by slightly more than expected.
The Labor Department said its consumer price index climbed by 0.4 percent in August after inching up by 0.1 percent in July.
Meanwhile, excluding sharply higher energy prices and an uptick in food prices, core consumer prices rose by 0.3 percent in August after edging up by 0.2 percent in July. Economists had expected core prices to rise by another 0.2 percent.
The data has widely solidified expectations that the Federal Reserve will raise interest rates by a quarter point next week.
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