Treasuries Close Modestly Higher Ahead Of Next Week's Fed Meeting

(RTTNews) - After ending the previous session roughly flat, treasuries saw modest strength during the trading day on Friday.

Bond prices gave back ground after an initial move to the upside but still managed to end the day in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1 basis point to 3.068 percent.

The modestly higher close by treasuries came as traders look ahead to next week's Federal Reserve meeting amid a quiet day on the U.S. economic front.

The Fed is scheduled to announce it latest monetary policy decision next Wednesday and is widely expected to raise interest rates by another quarter point.

The accompanying statement is likely to attract considerable attention along with Fed Chairman Jerome Powell's press conference as traders attempt to gauge the outlook for further rate hikes.

While the Fed announcement is likely to be in the spotlight next week, trading could also be impacted by reaction to reports on consumer confidence, new home sales, durable goods orders and personal income and spending.

Bond traders are also likely keep an eye on the results of the Treasury Department's auctions of two-year, five-year, and seven-year notes.

The Treasury is due to sell $37 billion worth of two-year notes next Monday, $38 billion worth of five-year notes next Tuesday and $31 billion worth of seven-year notes next Thursday.