2018.09.1415:20:00UTC+00Treasuries Close Lower Following Slew Of Economic Data

After ending the previous session roughly flat, treasuries moved to the downside during trading on Friday but closed off their lows of the session.

Bond prices initially came under pressure but regained some ground as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.1 basis points to 2.994 percent.

The ten-year yield pulled back after reaching a high above 3 percent but still ended the session at its highest closing level in over a month.

The early weakness among treasuries came following the release of a slew of U.S. economic data, including a report showing retail sales increased by much less than expected in August.

The Commerce Department said retail sales inched up by 0.1 percent in August after climbing by an upwardly revised 0.7 percent in July.

Economists had expected retail sales to rise by 0.4 percent compared to the 0.5 percent increase originally reported for the previous month.

Excluding the decrease in auto sales, retail sales rose by 0.3 percent in August after jumping by an upwardly revised 0.9 percent in July.

Ex-auto sales had been expected to climb by 0.5 percent compared to the 0.6 percent growth originally reported for the previous month.

Meanwhile, a separate report from the University of Michigan showed a much bigger than expected improvement in consumer sentiment in September.

The report said the consumer sentiment index jumped to 100.8 in September from 96.2 in August. Economists had expected the index to inch up to 96.6.

The Federal Reserve also released a report showing industrial production rose by slightly more than expected in the month of August.

The Fed said industrial production climbed by 0.4 percent in August, matching the upwardly revised increase in July.

Economists had expected production to rise by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month.

Treasuries climbed off their worst levels after a report from Bloomberg said President Donald Trump has instructed aides to proceed with plans to impose tariffs on an additional $200 billion worth of Chinese goods.

Citing people familiar with the matter, Bloomberg said Trump held a meeting on Thursday to discuss the tariffs with top trade advisers, including Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer.

The latest news came on the heels of reports earlier this week indicting the U.S. has proposed holding a new round of trade talks with China in the near future.

Developments regarding trade may impact the markets next week along with reports on homebuilder confidence, housing starts and existing home sales.