After seeing some early volatility, treasuries moved moderately higher during the trading session on Friday.
Bond rates hovered in favorable territory in afternoon trading after changing in the early morning. As an outcome, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.3 basis points to 2.189 percent.
With the drop on the day, the ten-year yield extended the decline seen over the 2 previous sessions, falling to its least expensive closing level in well over a month.
The greater nearby treasuries came as the ever-escalating war of words in between President Donald Trump and North Korea continued to raise geopolitical concerns.
Trump recommended in remarks on Thursday that his remarks threatening North Korea with “fire and fury” might not have been difficult enough.
“I will tell you this, North Korea much better get their act together or they’re going to remain in trouble like couple of nations ever have remained in trouble in this world,” Trump said.
Trump continued to increase the rhetoric with a post on Twitter today showing that the United States is prepared to take military action against North Korea.
“Military services are now fully in location, locked and packed, need to North Korea act unwisely. Hopefully Kim Jong Un will discover another path!” Trump tweeted.
In an evident response to Trump’s tweet, a declaration issued by North Korea’s official KCNA news company declared the president is “owning the circumstance on the Korean peninsula to the brink of a nuclear war.”
Developments regarding the situation with North Korea might stay in focus next week, although traders are likewise most likely to watch on reports on retail sales, real estate starts, and commercial production.
The Federal Reserve is also set up to launch the minutes of its most current monetary policy conference, which may shed some light on the outlook for the rate of interest.
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