U.S. Treasurys yields were steady on Friday after a hectic week that saw intermediate-dated note yields rally back from two-month highs, though many analysts and traders see the debt as likely to continue to underperform longer-term bonds.
Two-year, three-year, five-year and seven-year notes have underperformed since Federal Reserve Chair Janet Yellen said last week that the central bank could raise interest rates six months after its current bond-buying program ends, suggesting a potential rate hike as early as spring 2015.
Economic releases due out next week, culminating in Friday's employment report for March, are being awaited for signs on the strength of the economy and whether recent weakness was temporary.
"Next week is an important week because we get the first look at the data for March," said Gary Pollack, head of fixed-income trading at Deutsche Bank Private Wealth Management in New York.
"There is a big debate about the economy and how much of the weakness we've seen in the first quarter is weather related and how much is not."Employers are expected to have added 195,000 jobs in March, according to the median estimate of economists polled by Reuters.
Traders this week have taken some profits from flattening trades that benefited from weakness in intermediate-dated notes after Yellen's comments.
Investors closing out these trades likely helped the Treasury sell $96 billion in new short- and intermediate-dated debt this week.