Treasuries Give Back Ground Following Yesterday's Advance

(RTTNews) - Following the strong upward move seen over the course of the previous session, treasuries moved back to the downside during trading on Friday.

Bond prices moved lower early in the day and remained in negative territory throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.1 basis points to 4.007 percent.

The pullback by treasuries came as traders cashed in on recent strength in the bond markets, which saw the ten-year yield close below 4.0 percent for the first time since early April on Thursday.

Easing concerns about bad loans also contributed to the weakness among treasuries, with stocks on Wall Street regaining ground following yesterday's downturn.

Shares of banking stocks like Jefferies (JEF) and Zion Bancorp (ZION) showed strong moves back to the upside after leading the markets lower in the previous session.

Jefferies and Zion benefitted from positive analyst comments, while banks like Truist Financial (TFC), Fifth Third (FITB) and Huntington Bancshares (HBAN) also moved higher after reporting better than expected quarterly earnings.

Treasuries also gave back ground amid easing concerns about the trade dispute between the U.S. and China following the latest comments from President Donald Trump.

In an interview with Fox Business this morning, Trump said the high tariffs he has threatened on Chinese imports are "probably not [sustainable]" but argued "they forced me to do that."

Trump also confirmed he would meet with Chinese President Xi Jinping at a summit in South Korea later this month after previously casting doubt on whether the planned meeting would be worthwhile.

A report on consumer price inflation that is due to be released despite the government shutdown is likely to be in focus next week.