After coming under pressure in the previous session, treasuries moved back to the upside during trading on Thursday.

Bond prices moved higher early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.9 basis points to 0.926 percent.

Treasuries may have benefited from uncertainty about the stimulus package approved by Congress, as President Donald Trump has expressed opposition to the bill.

House Democrats sought to increase the direct payments included in the bill to $2,000, as the president called for but were blocked by Republicans.

Meanwhile, Democrats blocked the GOP’s efforts to address the foreign aid included in the package, which was another one of Trump’s concerns about the bill.

The relief package was attached to a government spending bill, and Trump risks a government shutdown next Tuesday is he does not sign the legislation.

Bond traders seemed to shrug off news that U.K. and the European Union have reached a post-Brexit trade agreement.

The news of the agreement comes just a week before a December 31st deadline, offsetting recent concerns about a potential no-deal Brexit.

“It has been a long and winding road but we have got a good deal to show for it,” said EU Commission President Ursula von der Leyen. “It is fair, it is a balanced deal and it is the right and responsible thing to do for both sides.”

Overall trading activity remained relatively subdued during the abbreviated trading session, as some traders looked to get a head start on the Christmas weekend.

Following the long weekend, next week’s trading is likely to remain relatively light ahead of the New Year’s Day holiday next Friday.

Developments regarding the stimulus package may attract attention along with reports on pending home sales and weekly jobless claims.

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 material has been provided by InstaForex Company – www.instaforex.com

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