After seeing initial weakness, treasuries recovered over the course of the trading session on Friday before closing roughly flat.
Bond prices spent the afternoon lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.826 percent.
The roughly flat close by treasuries came following remarks by Federal Reserve Chairman Jerome at the Kansas City Fed’s economic policy symposium in Jackson Hole, Wyoming.
Powell reiterated the Fed’s stance that further gradual increases in interest rates will likely be appropriate if the strong growth in income and jobs continues.
On the U.S. economic front, the Commerce Department released a report showing a much bigger than expected decrease in durable goods orders in the month of July.
The Commerce Department said durable goods orders tumbled by 1.7 percent in July after climbing by 0.7 percent in June. Economists had expected durable goods orders to drop by 0.5 percent.
Excluding a significant decrease in orders for transportation equipment, durable goods orders rose by 0.2 percent in July after inching up by 0.1 percent in June. Ex-transportation orders had been expected to rise by 0.5 percent.
Next week’s trading may be impacted by reaction to reports on consumer confidence, pending home sales, and personal income and spending.
Bond traders are also likely to keep an eye on the results of the Treasury Department’s auction of two-year, five-year, and seven-year notes.
The Treasury is due to sell $36 billion worth of two-year notes next Monday, $37 billion worth of five-year notes next Tuesday and $31 billion worth of seven-year notes next Wednesday.