US Treasury yields flatten following Yellen comments

U.S. government debt prices reversed earlier losses to trade little changed on Friday after Fed Chair Janet Yellen said the case has strengthened "in recent months' for a hike in interest rates.

The Federal Open Market Committee "continues to anticipate that gradual increases in the federal funds rate will be appropriate over time to achieve and sustain employment and inflation near our statutory objectives," Yellen said, according to prepared remarks.

Yellen was speaking at the Federal Reserve Bank of Kansas City Economic Symposium.

The yield on the benchmark 10-year Treasury note rose to around 1.6193 percent, while the yield on the 30-year Treasury bond fell to 2.2872 percent.

Two-year notes rose slightly, following remarks made by St. Louis Fed President James Bullard, a voting member this year on the central bank's policy-setting panel. He said the Fed's September meeting might be a good time to raise rates.

On the data front, the second read on second-quarter GDP showed growth of 1.1 percent.

In oil markets, Brent crude traded at $49.65 a barrel, down 0.04 percent, while U.S. crude was around $47.31 a barrel, down 0.04 percent.