2023.09.2219:12:00UTC+00Treasuries Regain Ground Following Yesterday's Sell-Off

Following the sell-off seen in the previous session, treasuries regained some ground during the trading day on Friday.

Bond prices moved higher in morning trading and remained firmly positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid lid basis points to 4.438 percent.

The rebound by treasuries may have reflected bargain hunting after the ten-year yield spiked 13.1 basis points to its highest closing level since October 2007 on Thursday.

Treasuries may also have benefitted from their appeal as a safe haven, as concerns about the outlook for interest rates contributed to a recent sell-off on Wall Street.

While the Federal Reserve left interest rates unchanged as widely expected on Wednesday, the central bank forecast another rate hike before the end of the year as well as keeping rates at elevated levels for longer than previously anticipated.

Trading activity remained somewhat subdued, however, as traders looked ahead to the release of some key economic data next week that could impact the outlook for interest rates.

Next week will see the release of a report on personal income and spending that includes readings on inflation said to be preferred by the Fed.

The Fed's preferred inflation readings are likely to be in focus, while traders are also likely to keep an eye on reports on new home sales, durable goods orders and consumer confidence.