WASHINGTON (dpa-AFX) - While trading activity was relatively light, treasuries moved modestly higher over the course of the trading day on Friday.
After seeing initial strength, bond prices pulled back in morning trading only to move back to the upside in the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.4 basis points to 2.25 percent.
The modest strength among treasuries came on the heels of the sell-off that was seen on Tuesday in reaction to the upwardly revised third quarter GDP.
The data pointed to continued strength in the U.S. economy and led bond traders to bet that the Federal Reserve will begin raising interest rates in the near future.
Trading activity was relatively subdued, however, as many traders remained away from their desks following the Christmas Day holiday on Thursday.
New Year's Eve and the New Year's Day holiday may keep traders on the sidelines for much of next week as well.
Nonetheless, trading could be impacted by the release of reports on consumer confidence, pending home sales and manufacturing activity.
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