Treasuries Move Higher Amid Drop In The Value Of The Dollar

(RTTNews) - Treasuries showed a notable move to the upside during trading on Friday after closing nearly flat for two straight days.

Bond prices moved higher in morning trading and remained firmly positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.4 basis points to 2.232 percent.

The decrease extended a recent downward trend by the ten-year yield, which fell to its lowest closing level in over three weeks.

Treasuries benefited from continued weakness in the value of the U.S., which fell to a nearly two-year low against the euro.

Political concerns contributed to the dollar's slide this week as well as the interpretation of comments from European Central Bank Chief Mario Draghi.

Overall trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

The Federal Reserve is likely to be in focus next week, with the central bank due to announce its latest monetary policy decision next Wednesday.

While the Fed is widely expected to leave interest rates unchanged, traders will pay close attention to the accompanying statement.

Economic data may also attract attention next week, with traders likely to keep an eye on reports on new and existing home sales, durable goods orders, consumer confidence and second quarter GDP.