26.07.201915:20:00UTC+00Treasuries Close Roughly Flat Following Choppy Trading Day

Treasuries showed a lack of direction throughout much of the trading session on Friday before ending the day roughly flat.

Bond prices spent most of the day lingering near the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.081 percent.

Bond traders seemed reluctant to make any significant moves ahead of the Federal Reserve's highly anticipated monetary policy announcement next Wednesday.

The Fed is widely expected to cut interest rates by at least 25 basis points, although recent economic data has generated some uncertainty about the outlook for rates.

Adding to the uncertainty, the Commerce Department released a report showing U.S. economic growth slowed in the second quarter but still exceeded economist estimates.

The Commerce Department said real gross domestic product climbed by 2.1 percent in the second quarter following the 3.1 percent jump in the first quarter. Economists had expected the pace of GDP growth to slow to 1.9 percent.

The stronger than expected GDP growth reflected positive contributions from consumer spending, federal government spending, and state and local government spending.

Meanwhile, negative contributions from private inventory investment, exports, non-residential fixed investment and residential fixed investment limited the upside.

"Now in its longest expansion on record, the U.S. economy continues to look healthy," said Oxford Economics' Chief U.S. Economist Gregory Daco and U.S. Economist Jake McRobie.

They added, "However, given the persistent protectionist draft, the lingering policy uncertainty breeze, the sniffling global economy, and the cooling room temperature at home, now may be an opportune time for a Fed immunization shot."

The Fed's monetary policy decision is likely to be in the spotlight next week, although the Labor Department's monthly jobs report is also likely to attract attention.

Traders will also keep an eye on reports on consumer confidence, pending home sales, private sector employment, manufacturing activity, and the trade deficit.