2018.05.2019:18:00UTC+00Benchmark 10-Year Yield Notches Biggest Weekly Rally in a Month

U.S. government bond prices rally, driving yields lower, as geopolitical concerns, including those revolving around global trade and Italian politics, boosted demand for assets perceived as havens such as Treasuries.

The trading on Friday helped to offset the weeklong selloff triggered by multitude of concerns in the bond market, including increasing bond supply, higher inflation and a faster rate of rake increases than the Federal Reserve has initially penciled in.

The 10-year Treasury note edged down 4.2 basis points to 3.067 percent, after hitting a seven-year intraday high of 3.126 percent early on Friday. The maturity pared its weeklong rally to 9.6 basis points, its biggest increase since April 20.

Yield on the two-year note edged down 2.3 basis points to 2.548 percent, with its weeklong rally standing at a basis point. Meanwhile, the 30-year bond rate fell by 3.6 basis points to 3.210 percent, adding to a weeklong increase of 9.8 basis points to 3.210 percent, its biggest of such move since April 20.

For the week, Treasuries received pressure from a mix of concerns over the Federal Reserve's tightening, increased bond issuance and inflation expectations.

Part of the selloff eased later after persisting trade concerns fed appetite for safe-haven assets such as U.S. government bonds on Friday. U.S. trade representative Robert Lighthizer said that the U.S. was “nowhere near” a deal on the North American Free Trade Agreement. Failing to present a revised deal to Congress on the given deadline should keep the present NAFA in place while dashing hopes for an immediate resolution to the lingering uncertainty around a future trade agreement.