Treasuries staged a comeback as safe-haven vehicles on Friday as greater risks of a U.S. recession raised the chance of a U.S. recession.
Investors fled risky investments in the stock market which fell today over concerns that banks will continue to experience credit-related writedowns. Shares U.S. banks JPMorgan fell 3.4 percent while Bank of America dropped 3.2 percent.
Compounding the negative outlook were comments from San Francisco Federal Reserve member Janet Yellen who expects the first half of 2008 to languish, while mentioning trouble in housing and financial markets.
Investors are expecting the Fed to continue cutting rates after steep cuts in recent weeks.
Ten year Treasury notes rose 31/32 to yield 3.65 percent, down from 3.77 percent late Thursday at 4:15 p.m. in New York. Two year Treasuries were up 3/32 to yield 1.95.