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Treasuries Extend Recent Move To The Upside

After seeing some early volatility, treasuries moved moderately higher over the course of the trading session on Friday.

Bond prices hovered in positive territory in afternoon trading after fluctuating in the morning. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.3 basis points to 2.189 percent.

With the drop on the day, the ten-year yield extended the decline seen over the two previous sessions, falling to its lowest closing level in well over a month.

The higher close by treasuries came as the ever-escalating war of words between President Donald Trump and North Korea continued to raise geopolitical concerns.

Trump suggested in remarks on Thursday that his comments threatening North Korea with “fire and fury” may not have been tough enough.

“I will tell you this, North Korea better get their act together or they’re going to be in trouble like few nations ever have been in trouble in this world,” Trump said.

Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the U.S. is prepared to take military action against North Korea.

“Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!” Trump tweeted.

In an apparent response to Trump’s tweet, a statement issued by North Korea’s official KCNA news agency claimed the president is “driving the situation on the Korean peninsula to the brink of a nuclear war.”

Developments regarding the situation with North Korea may remain in focus next week, although traders are also likely to keep an eye on reports on retail sales, housing starts, and industrial production.

The Federal Reserve is also scheduled to release the minutes of its latest monetary policy meeting, which may shed some light on the outlook for the interest rates.

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