WASHINGTON (dpa-AFX) - Following the pullback seen during the previous session, treasuries showed a strong move back to the upside during trading on Friday.
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, slid 5.4 basis points to 4.231 percent.
The ten-year yield more than offset the 3.6 basis point increase seen on Thursday, falling to its lowest closing level since early December.
The early rebound by treasuries came in reaction to a Commerce Department report showing closely watched readings on U.S. consumer price inflation increased in line with economist estimates in the month of January.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in January, matching the increase seen in December as well as economist estimates.
The annual rate of growth by the PCE price index slowed to 2.5 percent in January from 2.6 percent in December, which also matched expectations.
Excluding food and energy prices, the core PCE price still climbed by 0.3 percent in January after edging up by 0.2 percent in December. The increase by core prices was also in line with estimates.
The annual rate of core PCE price growth slowed to 2.6 percent in January from 2.9 percent in December, which also matched expectations.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The report said personal income grew by 0.9 percent in January after rising by 0.4 percent in December, while personal spending dipped by 0.2 percent in January after climbing by 0.8 percent in December.
Treasuries saw continued strength in afternoon trading as a meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskyy devolved into a shouting match.
The heated exchange came as Trump and Zelenskyy met to discuss a deal on Ukraine's critical rare earth minerals in exchange for continued aid.
The back-and-forth, which also involved Vice President JD Vance, became increasingly tense as the leaders discussed Trump's approach to the war between Russia and Ukraine.
Towards the end of the exchange, Trump suggested Ukraine would be left to fend to for itself if they are unwilling to reach a peace deal.
In a statement posted on Truth Social following the dustup, Trump claimed 'Zelenskyy is not ready for Peace if America is involved' and accused the Ukrainian leader of disrespecting the U.S.
The Labor Department's monthly jobs report is likely to be in the spotlight next week, although reports on manufacturing and service sector activity, private sector employment and weekly jobless claims may also attract attention.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
