2025.03.2119:26:00UTC+00Treasuries Move Modestly Lower After Seeing Early Strength

Treasuries moved to the upside early in the session on Friday but gave back ground over the course of the trading day.

Bond prices pulled back well off their early highs, eventually ending the day modestly lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 1.9 basis points to 4.252 percent after hitting a low of 4.20 percent.

Treasuries initially benefitted from the appeal as a safe haven amid ongoing concerns about the economic outlook along with rising geopolitical tensions and uncertainty about the impact of President Donald Trump's tariffs.

Buying interest waned following comments from Trump suggesting "there'll be flexibility" with the reciprocal tariffs set to be imposed April 2nd.

However, Trump said during the same remarks in the Oval Office that providing exceptions for one country means "you have to do that for all," furthering the uncertainty about his plans.

Overall trading activity was somewhat subdued, however, with a lack of major U.S. economic data likely keeping some traders on the sidelines.

The Federal Reserve's preferred readings on consumer price inflation are likely to be in the spotlight next week, while reports on durable goods orders and new and pending home sales may also attract attention.