U.S. Treasury note prices rose on Friday after amid continuing struggles in the financial sector as the Federal Reserve, through JPMorgan Chase, gave emergency funds to struggling investment bank Bear Stearns.

Bear Stearns had been the subject of speculation earlier this week that it was in need of funding due to cash shortages. It admitted said today its cash position had significantly deteriorated.

U.S. treasuries got a boost from the developments as recent credit market troubles and concerns over inflation have been sending concerned investors to safe-haven investments such as government bonds.

Two year notes rose 8/32 in price to yield 1.487 percent at 12:14 p.m. in New York. Ten year treasuries rose 26/32 to yield 3.434 percent.

U.S. stocks fell sharply today on the news. Crude oil, which has been rising as investors use it as a hedge against the falling dollar and stocks, succumbed today, falling from an all-time high. Other commodities fared better, with gold, platinum copper, soybeans and cocoa all rising.

Consumer prices were unexpectedly steady in February after gaining 0.4 percent in January. Core prices, which exclude volatile food and energy were also unchanged. Analysts are still expecting that the Federal Reserve will make a cut to interest rates when it meets on March 18 in a scheduled policy meeting.