Treasuries Close Moderately Lower After Lackluster Session

(RTTNews) - Treasuries fluctuated over the course of the trading session on Friday before ending the session moderately lower.

Bond prices spent the day bouncing back and forth across the unchanged but finished the day on the downside. Subsequently, the yield on the benchmark ten-year note, which moves opposite of it price, rose by 1.8 basis points to 1.888 percent.

With the increase on the day, the ten-year yield closed higher for the fifth straight session, reaching its highest closing level in almost a month.

The continued weakness among treasuries came as traders kept on eye on Wall Street, where the markets reacted to mixed earnings news.

Traders were also digesting a report from Markit showing that its reading on U.S. manufacturing activity unexpectedly fell to a six-year low in April.

Markit said the flash estimate of its manufacturing purchasing managers index came in at 50.8 in April compared to 51.5 in March.

A reading above 50 continues to indicate growth in the manufacturing sector, but economists had expected the index to rise to 52.0.

Next week's trading is likely to be driven by reaction to the Federal Reserve's monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, but traders are likely to keep a close eye on the accompanying statement for clues about the outlook for the next meeting in June.

On the economic front, traders will be presented with reports on new home sales, durable goods orders, consumer confidence, and personal income and spending.