After moving sharply higher over the past few sessions, treasuries showed a notable pullback during trading on Friday.
Bond prices fell sharply at the start of trading and saw some further downside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, advanced 6.8 basis points to 1.356 percent.
The ten-year yield closed higher for the first time in four sessions, rebounding after ending the previous session at its lowest closing level since February.
The pullback by treasuries came as traders cashed in on some of the recent strength in the bond markets despite lingering concerns about the global economy.
Despite giving back some ground, treasuries moved notably higher for the week amid indications the Federal Reserve is not in a hurry to begin scaling back its asset purchase program.
Following a relatively quiet week on the U.S. economic front, next week’s trading may be impacted by reaction to reports on consumer and producer price inflation, industrial production and retail sales.
Congressional testimony by Federal Reserve Chair Jerome Powell is also likely to attract attention along with the Fed’s Beige Book.
Bond traders are also likely to keep an eye the results of the Treasury Department’s auctions of three-year and ten-year notes and thirty-year bonds.