After trending lower over the past several sessions, treasuries regained some ground during the trading day on Friday.
Bond prices fluctuated over the course the session but managed to close in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.1 basis points to 1.655 percent.
The pullback by the ten-year yield came after it ended the previous session at its highest closing level in five months.
Treasuries may have benefited from bargain hunting following recent weakness, which came amid expectations the Federal Reserve may announce plans to begin scaling back bond purchases as early as next month.
Trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
Looking ahead, next week’s trading may be impacted by reaction to reports on new home sales, consumer confidence, durable goods orders, and personal income and spending.
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.