FX.co ★ Treasuries Give Back Ground After Early Advance But Remain Positive

After a vigorous upward trend during the beginning of the trading session, treasury bonds saw a slight fallback but maintained an overall positive performance. Despite this, bond prices ended the day moderately above the opening mark, although they had not sustained their peak levels throughout the whole session. Consequently, the yield on the benchmark ten-year note, which inversely relates to its price, dropped by 3.2 basis points, down to 4.615 percent, after reaching a session low of 4.582 percent.

The initial victories for the treasury bonds could be attributed to their attractiveness as a secure investment, This was chiefly sparked by Israel’s military actions against Iran, seemingly a contained retaliation for Tehran's recent drone and missile attacks. However, buyer's enthusiasm dimmed soon after trading commenced as Iran's state-run media outlets understated these attacks, attributing the blasts heard in Isfahan to the operations of Iran's own air defense systems instead.

Iran's semi-official news agency Tasnim also revealed that the nuclear facilities within Iran's central Isfahan province are entirely secure. A scarcity of crucial U.S. economic data could also account for the trader's hesitation for big steps, in anticipation of key report’s releases in the ensuing week.

The trading momentum in the coming week might also respond to the recent U.S. economic data, consisting of various reports on parameters like new home sales, orders for durable goods, and personal income and expenditure. The U.S. Commerce Department's report on personal income and spending also covers inflation metrics that are said to be favored by the Federal Reserve.