Treasuries Extend Upward Trend Amid Falling Oil Prices

(RTTNews) - Treasuries moved notably higher over the course of the trading day on Friday, extending the upward trend seen over the past few sessions.

Bond prices climbed steadily higher for much of the abbreviated trading session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4 basis points to 2.194 percent.

With the drop on the day, the ten-year yield closed lower for the sixth straight session, falling to its lowest closing level in over a month.

The strength among treasuries came as a sharp drop by the price of crude oil fuel speculation that low inflation will keep the Federal Reserve from raising interest rates.

Crude for January delivery has tumbled $7.38 to $66.31 a barrel on the day, hitting its lowest levels in over four years.

The steep decline by the price of oil came amid news that the powerful Organization of Petroleum Exporting Countries said it won't cut production levels despite the recent drop in prices.

Saudi Arabian oil minister Ali Al-Naimi said OPEC would maintain its oil production target at 30 million barrels per day.

"With another sharp drop in oil prices, consumers and transportation companies rejoice and the BoJ, ECB, BoE and Fed stew that their inflation targets are now more difficult to achieve," said Peter Boockvar, managing director at the Lindsey Group.

U.S. economic data may be in focus next week, with traders likely to keep a close eye on the release of the monthly employment reports next Friday.

Ahead of the release of the jobs report, trading could be impacted by data on manufacturing and service sector activity, construction spending, and labor productivity.