Treasuries saw further upside in early trading on Friday but gave back ground over the course of the trading session.<\/p>\n
Bond prices pulled back off their early highs and spent the rest of the day lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 4.258 percent.<\/p>\n
Treasuries initially extended the rebound seen in the previous session, as traders continued to pick up bonds at relatively reduced levels.<\/p>\n
Buying interest waned over the course of the session, as traders looked ahead to the release of some key economic data next week.<\/p>\n
Next week will see the release of consumer and producer inflation data as well as reports on retail sales, industrial production and consumer sentiment.<\/p>\n
The Labor Department’s report on consumer price inflation in the month of August is likely to be in the spotlight, as the data could have a significant impact on the outlook for interest rates.<\/p>\n
“The August inflation report will tell a mixed story as surging energy prices weigh on headline inflation,” predicted Edward Moya, senior market analyst at OANDA. “Core readings however are expected to remain steady and that should support a September skip by the Fed.” <\/p>\n
He added, “The risks for a November rate hike remain on the table and that will only happen if US growth exceptionalism remains in place.”<\/p>\n
CME Group’s FedWatch Tool is currently indicating a 93.0 percent chance the Federal Reserve will leave interest rates later this month but a 43.4 percent chance of another rate hike in November. <\/p>\n