08.02.201915:25:00UTC+00Treasuries Extend Upward Move Amid Concerns About Trade

Extending the notable upward move seen over the course of the previous session, treasuries saw some further upside during trading on Friday.

Bond prices moved higher 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, dipped 2 basis points to 2.632 percent.

The continued strength among treasuries came amid lingering concerns about a potential trade deal between the U.S. and China.

Adding to the worries, a report from the Wall Street Journal said the U.S. and China don't even have a draft accord that specifies where they agree and disagree.

The report comes after President Donald Trump told reporters he will not meet with Chinese President Xi Jinping before a crucial March deadline.

"Not yet. Maybe. Probably too soon," Trump said when asked if he would meet with Xi in the next month or so before flatly saying, "No" when asked if the two leaders would meet before the deadline.

Tariffs on Chinese goods are currently set to jump automatically on the deadline, although Trump is expected to delay the increase as talks continue.

However, White House economic adviser Larry Kudlow told Fox Business on Thursday the U.S. and China have a "pretty sizable distance to go" before reaching a trade deal.

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

The economic calendar remains relatively early next week, although reports on consumer and producer price inflation and industrial production are likely to attract attention as the week progresses.