2014.12.1915:33:00UTC+00Treasuries Regain Ground Following Recent Pullback

Treasuries moved moderately higher over the course of the trading day on Friday, regaining some ground after falling sharply over the two previous sessions.

After initially showing a lack of direction, treasuries moved to the upside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.8 basis points to 2.176 percent.

The rebound by treasuries was partly due to bargain hunting following the pullback seen in the two previous sessions, which came in reaction to the Federal Reserve's monetary policy announcement.

Traders focused on the Fed's statement indicating that it can be patient in beginning to normalize the stance of monetary policy.

In her subsequent press conference, Fed Chair Janet Yellen said that the Fed is unlikely to start the process of normalizing policy for at least the next couple of meetings.

While the comments contributed to strength among riskier assets like stocks, traders moved out of safer havens such as U.S. bonds.

Treasuries partly offset the losses with the rebound during trading on Friday but still ended the session well off their recent highs.

Trading activity was relatively subdued on the day due to the lack of major U.S. economic data and the looming holidays.

Many traders are likely to remain away from their desks next week as a result of the Christmas Day holiday on Thursday.

Ahead of the holiday, trading could be impacted by the release of reports on new and existing home sales, durable goods orders, and personal income and spending.