Treasuries Close Modestly Higher Amid Uncertainty About Overseas Elections

(RTTNews) - After moving lower over the course of the two previous sessions, treasuries showed a modest move back to the upside during trading on Friday.

Bond prices moved notably higher in early trading before giving back some ground and moving roughly sideways into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.9 basis points to 2.536 percent.

The modest strength among treasuries was partly due to the safe haven appeal of bonds ahead of elections in Greece and Ukraine.

Treasuries benefited from concerns about what the outcome of the elections in Greece will mean for its membership in the eurozone as well as worries about the impact the Ukrainian elections will have on the ongoing conflict with pro-Russian militants.

Nonetheless, buying interest was somewhat subdued due to the release of a report from the Commerce Department showing that U.S. new home sales came in above economist estimates in April.

The Commerce Department said new home sales jumped 6.4 percent to a seasonally adjusted annual rate of 433,000 in April from the revised March rate of 407,000. Economists had expected new home sales to climb to a rate of 420,000.

The revised rate for March represents a substantial upward revision from the 384,000 originally reported, although it still represents a six-month low.

Following the long Memorial Day weekend, next week's trading could be impacted by the outcome of the Greek and Ukrainian elections as well as reports on U.S. durable goods orders, consumer confidence, and personal income and spending.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auctions of two-year, five-year, and seven-year notes.