Treasuries Move Back To The Upside Amid Mixed Data

(RTTNews) - After ending the previous session modestly lower, treasuries showed a moderate move back to the upside during trading on Friday.

Bond prices moved higher in early trading and hovered in positive territory throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.5 basis points to 2.668 percent.

With the decrease on the day, the ten-year yield offset the 1.8 basis point gain posted on Thursday, ending the session at its lowest closing level in over two months.

The strength among treasuries came as traders continued to look at bonds as a safe haven amid concerns about recent developments in the emerging markets.

Traders were also digesting a mixed batch of U.S. economic data, including a report from the Commerce Department showing that personal spending increased by more than expected in December even as personal income came in nearly unchanged.

The Commerce Department said personal income inched up by less than a tenth of a percent in December after rising by 0.2 percent in November. Economists had been expecting another 0.2 percent increase.

At the same time, the report said personal spending climbed by 0.4 percent in December following a 0.6 percent increase in the previous month. The spending growth exceeded economist estimates for a 0.2 percent uptick.

MNI Indicators released a separate report showing a slowdown in the pace of growth in Chicago-area business activity in January, while Thomson Reuters and the University of Michigan revealed an upward revision to their consumer sentiment index for the month.

Next week, traders are likely to focus on the monthly jobs report, with employment expected to increase by about 185,000 jobs in January compared to the disappointing job growth seen in December.

Reports on the U.S. trade balance, manufacturing and service sector activity, weekly jobless claims, and labor productivity are likely to attract attention in the lead up to the jobs report next Friday.