Treasuries Show Strong Move Back To The Upside

(RTTNews) - Following the pullback seen in the previous session, treasuries showed a strong move back to the upside during trading on Friday.

Bond prices moved notably higher in early trading and remained firmly positive throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 8.4 basis points to 2.267 percent.

The strong rebound by treasuries was partly due to continued concerns about the situation in Greece, as the debt-laden country remains at an impasse with its international creditors.

A meeting of European finance ministers on Thursday did not make any significant progress, and eurozone leaders are set to hold an emergency summit on Monday to discuss the issue again.

Greece has indicated that it will be unable to make a 1.5 billion euro payment to the International Monetary Fund at the end of the month without further aid, leading to a default.

Capital Economics said, "The odds of Greece defaulting on its debt, and possibly exiting the euro-zone too, seem to be growing by the day."

Next week's trading may be impacted by any developments regarding Greece along with the release of key U.S. reports on durable goods orders, new and existing home sales, 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.

The Treasury is due to auction $26 billion worth of two-year notes next Tuesday, $35 billion worth of five-year notes next Wednesday and $29 billion worth of seven-year notes next Thursday.