U.S. Treasury prices rose slightly as investor sentiment was shaken on news of the first confirmed Ebola case in New York with investors seeking low-risk 'haven assets.' The move into Treasuries was also sparked by the European Central Bank's stress tests on regional banks.
Benchmark 10-year Treasury notes last traded 4/32 up in price to yield 2.26 percent on Friday afternoon, down from Thursday's close of 2.277 percent. Prices for the 30-year bond dropped into negative territory with the yield at 3.035 percent.
A doctor in New York City, identified as Craig Spencer, has tested positive for the Ebola virus after returning from treating patients in Ebola-hit Guinea in West Africa. The news caused U.S. futures to fall Friday, signalling that Wall Street may give up recent gains. Both Asian and European market trading has been shaky following the news.
On the data front, sales for new single-family homes rose to a six-year high in September. The data on Friday will offer a further indication of the state of the U.S.housing market recovery. Sales increased 0.2 percent to a seasonally adjusted annual rate of 467,000 units, the Commerce Department said Friday morning.
On Thursday, treasury prices fell after U.S. data showed jobless claims rose slightly, but remained near pre-recession lows. The benchmark yield reached 2.3 percent on Thursday, a near two-week high.