Treasuries Show Modest Move Back To The Upside

(RTTNews) - Following the significant pullback seen in the previous session, treasuries showed a modest move back to the upside during trading on Friday.

Bond prices advanced early in the trading day and remained in positive territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.3 basis points to 4.073 percent.

The modest rebound by treasuries may have reflected their appeal as a safe haven amid lingering geopolitical concerns after Hamas leader Yahya Sinwar was killed during an operation by Israeli soldiers in the Palestinian enclave on Wednesday.

Lebanon's Hezbollah militant group said today it was moving to a new and escalating phase in its war against Israel, while Iran said "the spirit of resistance will be strengthened."

In U.S. economic news, the Commerce Department released a report showing a modest pullback by housing starts in the month of September.

The Commerce Department said housing starts fell by 0.5 percent to an annual rate of 1.354 million in September after spiking by 7.8 percent to a revised rate of 1.361 million in August.

Economists had expected housing starts to dip by 0.4 percent to an annual rate of 1.350 million from the 1.356 million originally reported for the previous month.

The report also showed a sharp pullback by building permits, which tumbled by 2.9 percent to an annual rate of 1.428 million in September after surging by 4.6 percent to a revised rate of 1.470 million in August.

Building permits, an indicator of future housing demand, were expected to slump by 1.0 percent to an annual rate of 1.460 million from the 1.475 million originally reported for the previous month.

Next week's trading may be impacted by reaction to latest U.S. economic data, including reports on durable goods orders and new and existing home sales.