FX.co ★ Treasuries Pull Back Further Off Recent Highs

U.S. Treasury securities experienced notable pressure throughout Friday's trading session, continuing the modest decline observed the day before.

Bond prices initially dipped slightly in early trading and saw continued downward movement as the session progressed. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, rose by 4.3 basis points, reaching 4.420 percent.

The extended pullback in Treasury prices may be attributed to profit-taking actions, as the ten-year yield rebounded from its lowest levels in over a month.

Remarks from Federal Reserve officials suggesting that interest rates are expected to remain elevated for an extended period may have also pressured Treasury prices, dampening recent optimism regarding the future direction of rates.

Despite this, the CME Group's FedWatch Tool currently indicates an 83.6 percent probability that interest rates will be a quarter-point lower by September.

Following the release of extensive U.S. economic data over the past couple of days, today's economic calendar is relatively subdued. However, the Conference Board issued a report showing a further decline in its leading U.S. economic indicators for April.

According to the Conference Board, its leading economic index dropped by 0.6 percent in April, following a 0.3 percent decrease in March. Economists had predicted an additional 0.3 percent decline.

Looking ahead to next week, the U.S. economic calendar remains relatively light, although reports on durable goods orders and both new and existing home sales may capture some attention, along with statements from several Federal Reserve officials.