A weaker-than-expected revision in second-quarter gross domestic product and a resurgent dollar helped lift U.S. government securities prices on Friday.
With a summer Friday's typically low trading volume magnifying the gains, traders were able to parlay the firmer tone into heady progress by midday before the market settled back down to a more modest increase. After being up more than a point by mid-afternoon, the benchmark 30-year Treasury bond closed up 5/8 of a point to yield 7.47%. "We got it going and pushed it up, testing the highs," one trader said. "The bottom line here is that technicals in the market are still pretty good, and right now the market is in pretty good shape."