Treasuries moved to the downside in afternoon trading on Friday, unable to sustain earlier gains despite a sell-off in the stock market.
The benchmark ten-year note began to cede ground at about noon and moved into negative territory shortly after. Subsequently, the yield on the note rose to 2.761 percent, an increase of 2.8 basis points on the day.
With the move, treasuries will close out the week on the downside, driving the yield on the benchmark ten-year note up 13.6 basis points for the week.
The weakness for the week came even though two considerable moves from the Federal Reserve and Treasury Department sparked interest in government backed debt earlier in the week.
Tuesday, the Federal Reserve Bank of New York released a tentative operation schedule for its purchases of longer-dated treasury securities through April 3, 2009.
Treasuries rallied on the news but could not sustain the gains, weakening Wednesday and early Thursday.
However, later during Thursday's session, treasuries saw considerable strength after the government's $24 billion auction for the seven-year note drew strong demand.
Some data that may have provided investors with direction Friday came from the government, as the Commerce Department reported personal spending that rose in line with estimates in February, while income fell by a little more than expected.
The report showed that personal spending rose 0.2 percent in February following an upwardly revised 1.0 percent increase in January. The modest increase in spending came in line with the expectations of economists.
Other economic news on the day included the final reading of the Reuters/University of Michigan's consumer sentiment index for March.
The index showed a revised reading of 57.3. The move surprised economists, who had expected the index to be lifted to 56.8 from the mid-month reading of 56.6.
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