Treasuries are seeing moderate weakness in morning trading Friday, as investors digest monthly unemployment figures that came in largely in line with analyst expectations.

The figures remained dismal, but with the data considered a lagging indicator of economic conditions, investors have instead focused on positive forward looking figures from the housing and manufacturing sectors released earlier this week.

The benchmark ten-year note has moved well off of its morning lows, but currently remains firmly in negative territory. The yield on the ten-year note is subsequently up 3.6 basis points at 2.788 percent.

Traders are mulling over data from the Labor Department that showed that non-farm payroll employment fell by 663,000 jobs in March following an unrevised decrease of 651,000 jobs in February. The drop in jobs came roughly in line with economists' expectations of a decrease of 658,000 levels.

While the decrease in jobs in February was unrevised, the drop in jobs in January was revised to 741,000 from the 655,000 that had been reported previously.

With the continued decrease in jobs, the unemployment rate rose to 8.5 percent in March from 8.1 percent in February, in line with expectations. The increase lifted the unemployment rate to its highest level since November of 1983.

Later in the morning, trading could be impacted by the release of the Institute for Supply Management's report on activity in the service sector. The index of activity in the sector is expected to edge up to 42.0 in March from 41.6 in February. The report is scheduled for release at 10 am ET.

In other economic news, after the G20 summit on Thursday, leaders of industrial and developing nations promised to contribute $1.1 trillion to the International Monetary Fund and other development bodies to lend to struggling countries reeling from the global economic turmoil.

They also pledged new efforts to clean up balance sheets in the banking sector, shut down tax havens, and extend financial regulations.

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