Treasuries Close Modestly Lower Amid Economic Optimism

(RTTNews) - Treasuries moved modestly lower during trading on Friday, extending the downward trend seen over the past few sessions.

After seeing some early volatility, bond prices remained stuck in the red throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.6 basis points to 3.006 percent.

With the modest increase on the day, the ten-year yield closed above 3 percent for the first time in well over two years.

The modest weakness among treasuries reflected recent optimism about the outlook for the economy and its ability to withstand the Federal Reserve's recently announced decision to begin tapering its asset purchase program

Continued signs of economic growth are likely to lead the Fed to continue to scale backs its asset purchases in the coming months.

Nonetheless, trading activity remained subdued on the day, with many traders still away from their desks following the holiday on Wednesday.

Next week's trading could be impacted by the release of reports on consumer confidence, manufacturing activity, and construction spending, although some traders may remain on the sidelines amid the New Year's Day holiday.