27.01.2017 21:22:39
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Treasuries See Further Upside Following Yesterday's Rebound
(RTTNews) - After turning higher over the course of the previous session, treasuries saw some further upside during trading on Friday.
Bond prices saw some volatility in early trading but eventually climbed firmly in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.7 basis points to 2.481 percent.
The strength among treasuries came following the release of a Commerce Department report showing economic growth in the U.S. slowed by more than anticipated in the final three months of 2016.
The report said gross domestic product increased by 1.9 percent in the fourth quarter following a 3.5 percent jump in the third quarter. Economists had expected GDP to climb by 2.2 percent.
Economists noted that the slowdown was largely due to the impact of fluctuations in trade and said the third and fourth quarters together indicate a strong second half.
A separate report from the Commerce Department showed durable goods orders unexpectedly declined in December amid a continued decrease in orders for transportation equipment.
The Commerce Department said durable goods orders fell by 0.4 percent in December after tumbling by a revised 4.8 percent in November. Economists had expected durable goods orders to jump by 2.6 percent.
However, excluding the drop in orders for transportation equipment, durable goods orders rose by 0.5 percent in December after jumping by 1.0 percent in November. The increase matched estimates.
The University of Michigan also released a report showing that consumer sentiment unexpectedly improved to its highest level in thirteen years in January.
The Federal Reserve is likely to be back in the spotlight next week, with the central bank due to announce its latest monetary policy decision on Wednesday.
While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement.
The monthly jobs report is also likely to be in focus next week along with reports on personal income and spending, manufacturing and service sector activity, and labor productivity.
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