After moving notably lower over the past several sessions, treasuries regained ground during the trading day on Friday.
Bond prices showed a strong move to the upside in early trading and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.4 basis points to 4.924 percent.
The pullback by the ten-year yield came on the heels of a four-day advance, with the yield once again reaching its highest levels in over sixteen years.
Overnight, the ten-year yield climbed above 5 percent for the first time since July 2007, potentially inspiring some traders to pick up treasuries at reduced levels.
Treasuries may also have benefitted from their appeal as a safe haven amid fears the Israel-Hamas war may escalate into a broader regional crisis.
Israeli Defense Minister Yoav Gallant told troops gathered at the Gaza border on Thursday that they would soon see the Palestinian enclave “from inside.”
Additionally, reports emerged that U.S. troops are being targeted at several military bases across Iraq and Syria, while a U.S. Navy warship destroyed cruise missiles and drones fired toward Israel by Houthi rebels in Yemen.