Treasuries Regain Ground Ahead Of Next Week's Fed Meeting

(RTTNews) - Treasuries moved modestly higher during trading on Friday, regaining ground following the sharp pullback seen in the previous session.

Bond prices gave back ground after an early advance but remained in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 1.7 basis points to 3.837 percent.

The modest rebound by treasuries came as traders looked ahead to the Federal Reserve's highly anticipated monetary policy meeting next week.

With the Fed widely expected to raise interest rates by another 25 basis point, traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.

Recent encouraging inflation data has led to optimism next week's rate hike will be the last, and traders will be looking for confirmation from the Fed.

Trading activity remained relatively subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines following the release of several key reports earlier in the week.

While the Fed decision is likely to be in the spotlight next week, reports on consumer confidence, new home sales, durable goods, second quarter GDP and personal income and spending are also likely to attract attention.