Treasuries Move Lower Amid Upbeat Corporate Results

(RTTNews) - Treasuries moved notably lower over the course of the trading session on Friday, extending the downward move seen in the previous session.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, advanced by 5.6 basis points to 2.560 percent.

The weakness among treasuries came as upbeat earnings news from financial giant JPMorgan Chase (JPM) reduced the appeal of safe havens like bonds.

JPMorgan kicked off the earnings season by reporting record first quarter earnings and revenues that exceeded analyst estimates.

The better than expected results from JPMorgan partly offset some of the recent concerns about corporate results for the quarter.

A report from the Labor Department showing a biggest than expected increase in import prices also weighed on treasuries, although the price growth was largely due to another spike in prices for fuel imports.

The Labor Department said import prices climbed by 0.6 percent in March after jumping by an upwardly revised 1.0 percent in February.

Economists had expected prices to rise by 0.4 percent compared to the 0.6 percent increase originally reported for the previous month.

The report said export prices also increased by 0.7 percent in March, matching the upwardly revised advance in February.

Export prices had been expected to edge up by 0.2 percent compared to the 0.6 percent increase originally reported for the previous month.

Meanwhile, the University of Michigan released a separate report showing consumer sentiment has deteriorated by more than anticipated in the month of April.

The preliminary report showed the consumer sentiment index dropped to 96.9 in April from the final March reading of 98.4. Economists had expected the index to edge down to 98.0.

Corporate results will continue to attract attention next week, although traders are also likely to keep an eye on reports on industrial production, homebuilder confidence, retail sales, and housing starts.