Treasuries Move Back To The Downside Amid Focus On Washington

(RTTNews) - After turning higher over the course of the previous session, treasuries moved back to the downside during trading on Friday.

Bond prices moved steadily lower in morning trading before moving roughly sideways in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 4.6 basis points to 2.652 percent.

With the move back to the upside, the ten-year yield remained stuck in the narrow range seen over the past two weeks.

Treasuries have been turning in a relatively lackluster performance in recent sessions after trending higher throughout much of September.

Uncertainty about the impact of the ongoing government shutdown may be keeping some traders on the sidelines as lawmakers remain at an impasse regarding a temporary spending bill.

Notably, the government shutdown led the Labor Department to postpone the release of its closely watched monthly employment report.

The report on the employment situation in the month of September had previously been due to be released this morning. The Labor Department said an alternative release date has not been scheduled.

In public remarks, Democrats and Republicans continue to try to pin blame for the shutdown on the other side, but recent reports suggest that moderate Republicans are urging House Speaker John Boehner to bring a "clean" spending bill to the floor.

Boehner has also pledged to avoid a government default, suggesting that there may be progress toward a solution before the October 17th deadline to raise the debt ceiling.

Next week's trading is likely to be driven by any significant developments in Washington, as an ongoing shutdown would likely postpone much of the economic data scheduled to be released.