Treasurys fell Friday, flattened by a bout of optimism on the U.S. economy after the White House unveiled a rescue package for Detroit's automakers and ahead of record auctions next week.
On Friday, the 10-year Treasury note slid 0.1%, with yields (UST10Y) at 2.12%, four basis points higher than levels late Thursday. Yields on the benchmark security, which move inversely to prices, had risen as much 11 basis points earlier.
Still, the rush into Treasurys spurred by the Federal Reserve's aggressive moves to lower interest rates drove 10-year yields nearly a half percentage point down for the week, and they set new lows along the way. As of Thursday, Treasurys had returned 2% for the week, according to Merrill Lynch's index of high-rated U.S. government debt.
In light and choppy trading ahead of a holiday-shortened week, short to medium term Treasurys (UST2YR) took the brunt of selling. Yields on two-year notes rose 4 basis points to 0.73%, three-year note yields gained 9 basis points to 1.03% and five-year notes advanced 8 basis points to 1.36%.
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