Treasuries Extend Rebound Amid Weakness On Wall Street

(RTTNews) - Following the rebound seen in the previous session, treasuries saw some further upside over the course of the trading day on Friday.

Bond prices moved steadily higher in morning trading before giving back some ground going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.9 basis points to 2.199 percent.

The strength among treasuries came amid continued weakness among stocks, which fell sharply for the second consecutive session.

Profit taking contributed to the weakness on Wall Street, as traders continued to cash in on the gains posted earlier in the week.

Further weakness among crude oil prices also weighed on stocks, with crude for January delivery slipping $0.22 to a nearly seven-year closing low of $34.73 a barrel.

Treasuries also seem to have benefited from their appeal as a safe haven on the heels of the Federal Reserve's interest rate hike on Wednesday.

While the Fed stressed any further rate hikes would be gradual, the central bank's focus on incoming data has generated some anxiety.

Trading activity is likely to be relatively subdued next week, as many traders will be away from their desks ahead of the Christmas Day holiday on Friday.

Nonetheless, some key economic data is due to be released in the days leading up to the holiday, including reports on new and existing home sales, durable goods orders, and personal income and spending.