Extending the upward move seen over the two previous sessions, treasuries moved notably higher during trading on Friday.

Bond prices moved to the upside early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5 basis points to 2.931 percent.

With the sharp decline seen over the past three days, the ten-year yield ended the session at its lowest closing level in a month.

Treasuries continued to benefit from geopolitical uncertainty following President Donald Trump's decision to call off the historic summit with North Korean leader Kim Jong Un.

In a post on Twitter this morning, Trump seemed pleased with the North Korean response to the cancellation of the planned meeting.

"Very good news to receive the warm and productive statement from North Korea," Trump said. "We will soon see where it will lead, hopefully to long and enduring prosperity and peace. Only time (and talent) will tell!"

The tweet from Trump came after the North's state-run Korean Central News Agency carried a statement by Vice Foreign Minister Kim Kye-gwan.

In the statement, Kim indicated North Korea remains willing to hold talks with the U.S. and expressed a willingness to give Trump the "time and opportunity" to reconsider his decision.

"We remain unchanged in our goal and will to do everything we can for the peace and stability of the Korean peninsula and humankind," Kim said.

On the U.S. economic front, the Commerce Department released a report showing a bigger than expected decrease in durable goods orders in the month of April.

The Commerce Department said durable goods orders slumped by 1.7 percent in April after spiking by an upwardly revised 2.7 percent in March. Economists had expected orders to drop by 1.4 percent.

Excluding a pullback in orders for transportation equipment, however, durable goods orders climbed by 0.9 percent in April after rising by 0.4 percent in March. Ex-transportation orders had been expected to increase by 0.5 percent.

A separate report from the University of Michigan unexpectedly showed a modest deterioration in consumer sentiment in the month of May.

Overall trading activity was somewhat subdued, however, with some traders looking to get a head start on the long Memorial Day weekend.

Following the long weekend, economic data is likely to be in focus next week due to the release of the Labor Department's closely watched monthly jobs report on Friday.

Reports on consumer confidence, personal income and spending, pending home sales, manufacturing activity and construction spending are also likely to attract attention.

The Federal Reserve is also due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.

by P2PNews Staff Writer

editorial@p2pnews.com

Market AnalysisBB

Image Credit: P2P Media