U.S. government debt prices were lower Friday morning, as investors tentatively returned to riskier assets after a turbulent week saw long-term bond yields fall to historic lows.
At around 02:50 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 1.5504%, while the yield on the 30-year Treasury bond was also higher at around 2.0057%.
A protracted trade war between the world’s two largest economies and growing fears about a possible global economic slowdown prompted the 30-year Treasury bond yield to fall below 2% for the first time ever in the previous session.
The 10-year note also slipped below 1.5% on Thursday — registering a three-year low.
President Donald Trump said Thursday that he believed the U.S.-China trade dispute would be relatively short, adding China wanted to make a trade deal.
His comments came after Beijing promised it would counter the latest tariffs on $300 billion of Chinese goods but urged the U.S. to meet halfway in order to secure an agreement.
On the data front, housing starts and building permits for July will be released at 8:30 a.m. ET, with consumer sentiment figures for August set to follow slightly later in the session.
There are no major U.S. Treasury auctions expected on Friday.