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US Treasurys rise after weak housing data

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Yield
 
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%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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U.S. bond prices rose on Friday as investors digested key pieces of economic data.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was lower at 2.150 percent, while the yield on the 30-year Treasury bond was also lower at 2.778 percent.

Housing starts fell 5.5 percent last month. Economists polled by Reuters expected a 3.5 percent uptick.

Other data released Friday included the preliminary read on June consumer sentiment, which also missed estimates.

The weak data comes as investors continued to digest the Federal Reserve's latest interest rate hike and renewed stance on balance sheet cuts.

The central bank announced Wednesday that it is to begin cutting its holdings of bonds and other securities before the end of the year.

But the data reinforced traders' doubts, analysts said, that the Fed would be able to hike again later this year, as the central bank projected Wednesday, when it raised interest rates for the
second time in 2017.

"If housing is weak, then economic growth is going to be weaker, too," said Stan Shipley, fixed income strategist at Evercore ISI in New York. "The Fed may be a little more cautious hiking in that environment."

Dallas Fed President Robert Kaplan spoke earlier on Friday, saying the central bank should be cautious about further raising rates.

—Reuters contributed to this report.