FX.co ★ Treasuries Show Modest Move Back To The Upside

Following a notable decline in the prior session, government bonds made a subtle advance on Friday.

Bond prices strengthened early in the trading day and stayed positive throughout. Consequently, the yield on the standard ten-year note, which typically moves inversely to its price, decreased by 2.3 basis points to 4.073 percent.

This slight uplift in treasury bonds could be attributed to their attractiveness as a safe haven amidst persistent geopolitical unrest after the operation by Israeli forces which resulted in the death of Hamas leader Yahya Sinwar in the Palestinian enclave on Wednesday.

In related developments, Lebanon's Hezbollah militant group announced today that it was entering a new phase of escalation in its ongoing conflict with Israel. Additionally, Iran stated that "the spirit of resistance will be strengthened."

In U.S. economic updates, a report from the Commerce Department indicated a slight decrease in housing starts for September. Housing starts declined by 0.5 percent, reaching an annual rate of 1.354 million, down from the revised rate of 1.361 million in August, which had seen a significant increase of 7.8 percent.

Economists had anticipated a 0.4 percent drop in housing starts to an annual rate of 1.350 million, compared to the 1.356 million initially reported for the previous month.

The report further highlighted a significant reduction in building permits, which plummeted by 2.9 percent to an annual rate of 1.428 million in September, following a 4.6 percent rise to a revised rate of 1.470 million in August.

Building permits, which serve as a predictor of future housing demand, were forecasted to decline by 1.0 percent to an annual rate of 1.460 million, from the originally reported 1.475 million the previous month.

Looking ahead, next week's trading activity may be influenced by the reaction to recent U.S. economic data, including statistics on durable goods orders and new and existing home sales.