Treasuries Close with Gains

The approach of the FOMC meeting next Tuesday was sufficient excuse for short-covering from oversold levels

Treasuries sprang back to life late in Friday's session, with the approach of the FOMC meeting next Tuesday sufficient excuse for short-covering from oversold levels and lifting of downside hedges by real-money and mortgage players.

Friday's economic reports weren't entirely immaterial, but position adjustments cut across the grain of the generally solid numbers. The producer price index fell 2.6% year over year and rose a mere 0.5% excluding food and energy, helping keep inflation on the back-burner and prices at the long-end of the curve supported. Production and capacity data exceeded expectations and University of Michigan sentiment leapt nearly 5 points to 95.0.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE