Treasuries Come Under Pressure Amid Rebound On Wall Street

(RTTNews) - After turning higher over the course of the previous session, treasuries turned in a reverse performance on Friday and came under pressure after seeing initial strength.

Bond prices pulled back off their early highs and slid firmly into the red as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.1 basis points to 1.608 percent.

The pullback by treasuries came as stocks showed a notable rebound along with shares of German financial giant Deutsche Bank (DB).

Shares of Deutsche Bank have jumped by 15.1 percent after plunging by 6.7 percent to a record closing low in the previous session.

The rebound by Deutsche Bank comes after AFP reported the company is nearing a $5.4 billion settlement with the U.S. Justice Department over its mortgage lending activities before the financial crisis.

On the economic front, the Commerce Department released a report this morning showing an uptick in personal income in the month of August.

The report said personal income edged up by 0.2 percent in August after climbing by 0.4 percent in July. The modest increase in income matched economist estimates.

Meanwhile, the Commerce Department said personal spending was virtually unchanged in August following a 0.4 percent increase in July. Economists had been expecting spending to rise by 0.2 percent.

A reading on inflation said to be preferred by the Federal Reserve showed that core consumer prices rose by 0.2 percent in August, matching expectations. The annual rate of growth accelerated to 1.7 percent from 1.6 percent.

MNI Indicators also released a report showing a faster than expected acceleration in the pace of growth in Chicago-area business activity in September.

The Chicago business barometer jumped to 54.2 in September from 51.5 in August, with a reading above 50 indicating growth in regional business activity. Economists had expected the index to inch up to 52.0.

A separate report from the University of Michigan showed an improvement in consumer sentiment in the month of September.

The University of Michigan said its consumer sentiment index for September was upwardly revised to 91.2 from the preliminary reading of 89.8.

The final reading on the consumer sentiment index for September is up from 89.8 in August and above economist estimates for a reading of 90.1.

The monthly employment report is likely to be in the spotlight next week, although data on manufacturing and service sector activity may attract attention in the days leading up to the jobs report next Friday.