Treasuries Close Modestly Higher Amid Worries About Ukraine

(RTTNews) - After ending the previous session roughly flat, treasuries moved modestly higher over the course of the trading day on Friday.

Bond prices moved to the upside in early trading and managed to remain in positive territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 2.2 basis points to 2.666 percent.

The modest strength among treasuries was partly due to renewed concerns about the ongoing crisis in Ukraine and the potential impact of escalating tensions.

Reports of Ukrainian forces killing several pro-Russian militants have raised the specter of a wider conflict, with Russian troops said to be conducting military exercises close to the border.

In remarks Thursday evening, U.S. Secretary of State John Kerry warned Russia that its window to change course is closing and reiterated that it faces further sanctions if it refuses to take steps to de-escalate the crisis.

While there were no major developments on Friday, worries about a possible Russian invasion over the weekend led traders to look for safe havens such as bonds.

However, a report from Thomson Reuters and the University of Michigan showing that consumer sentiment improved by more than previously estimated in April may have helped to limit the upside for treasuries.

The report showed that the final reading on the consumer sentiment index for April came in at 84.1 compared to the preliminary estimate of 82.6.

The upwardly revised reading reflects a notable increase from the final March reading of 80.0 and is well above economist estimates for a reading of 83.0.

While any further developments in Ukraine could impact next week's trading, investors are also likely to keep a close eye on the Federal Reserve's latest monetary policy announcement as well as the monthly jobs report.

Reports on national manufacturing activity, pending home sales, consumer confidence, and personal income and spending may also attract some attention.