Treasuries Extend Upward Move Amid Quiet Trading Day

(RTTNews) - Treasuries moved modestly lower over the course of the trading session on Friday after initially showing a lack of direction.

Bond prices slid firmly into negative territory in mid-day trading but ended the session off their worst levels. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.5 basis points to 2.371 percent.

With the uptick on the day, the ten-year yield extended the upward trend seen over the past few weeks, reaching its highest closing level in over a year.

The modest drop by treasuries reflected the recent downward momentum amid expectations of inflationary pressures under President-elect Donald Trump.

Trading activity on the day was relatively light, however, as many traders remained away from their desks following the holiday.

On the U.S. economic front, the Commerce Department released a report showing that the trade deficit in goods widened much more than expected in October.

The report said the goods deficit widened to $62.0 billion in October from $56.5 billion in September. The deficit had been expected to widen to $59.7 billion.

The wider deficit came as the value of imports climbed by 1.1 percent to $184.1 billion and the value of exports fell by 2.7 percent to $122.1 billion.

Looking ahead, next week's trading could be impacted by reaction to the Labor Department's monthly jobs reports due next Friday.

Reports on consumer confidence, personal income and spending, pending home sales, and manufacturing activity are also likely to attract attention next week along with the Federal Reserve's Beige Book.