Yields on U.S. Treasury bonds fell on Friday after construction and manufacturing data disappointed, reading
The Institute for Supply Management's index of national factory activity fell to 55.5 for December, just shy of analysts' forecast of 57.6. The figure read 58.7 the month before. A reading above 50 indicates expansion in the manufacturing sector.
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The Commerce Department reported a decline of 0.3 percent in November U.S. construction spending, unexpectedly missing economists' predictions that spending would rise 0.3 percent.
Thin trading volumes on the day after the New Year's holiday was seen as exacerbating price moves. "On a day where there are probably not many people around, even a small decline is noteworthy," said Jim Kochan, chief fixed income strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin. Kochan added that growth remained strong despite the decline.
"It's still a very, very good reading," he said.