After moving lower over the course of the previous session, treasuries saw some further downside during trading on Friday.<\/p>\n
Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.4 basis points to 4.322 percent.<\/p>\n
The continued weakness among treasuries came as the latest batch of U.S. economic data added to concerns about the outlook for interest rates ahead of next week’s Federal Reserve meeting.<\/p>\n
The Labor Department released a report this morning showing a bigger than expected increase in U.S. import prices in the month of August as well as a much bigger than expected surge in U.S. export prices.<\/p>\n
The Labor Department said import prices climbed by 0.5 percent in August after a downwardly revised 0.1 percent uptick in July.<\/p>\n
Economists had expected import prices to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.<\/p>\n
Meanwhile, the report said export prices spiked by 1.3 percent in August after climbing by a downwardly revised 0.5 percent in July.<\/p>\n
Economist had expected export prices to increase by 0.3 percent compared to the 0.7 percent advance originally reported for the previous month.<\/p>\n
A separate report released by the New York Fed showed a substantial turnaround in New York manufacturing activity in the month of September.<\/p>\n
The Federal Reserve also released a report showing U.S. industrial production increased by much more than expected in the month of August.<\/p>\n
The report said industrial production climbed by 0.4 percent in August following a downwardly revised 0.7 percent advance in July.<\/p>\n
Economists had expected industrial production to inch up by 0.1 percent compared to the 1.0 percent jump originally reported for the previous month.<\/p>\n
Meanwhile, traders largely shrugged off a report from the University of Michigan showed a notable decrease in near-term and long-term inflation expectations.<\/p>\n
The Fed’s monetary policy announcement is likely to be in the spotlight next week in what is otherwise a relatively light U.S. economic calendar. <\/p>\n