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US Treasurys higher as bond investors digest GDP data

U.S. government debt prices were higher on Friday, as investors digested key data releases including gross domestic product (GDP).

The yield on the benchmark 10-year Treasury note sat lower at around 2.294 percent, while the yield on the 30-year Treasury bond was down at 2.9 percent. Bond yields move inversely to prices.

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On the data front, United States second quarter GDP growth met expectations, rising 2.6 percent versus 2.6 percent expected.

Barring strong economic growth in 2015, the U.S. has consistently posted lower GDP metrics. In 2016, the U.S. economy performed at its worst since the recession: the economy grew 1.5 percent last year, according to Reuters.

"We'eve been on this steady, lowish 2 percent growth range. Our guess is we're going to stay here unless we get a shift in tax reform," said Cliff Corso, CEO of Insight Investments in North America.

"We do believe something will happen in terms of tax reform [but] if politicians don't show they can get something done, then that's going to be a risk heading into the midterm election."

The Employment Cost Index increased 0.5 percent between April and June after accelerating 0.8 percent in the first quarter, the Labor Department said on Friday.

Also on the data front, July consumer sentiment hit 93.4, versus expectations of 93.1.

When it comes to the Federal Reserve, Minneapolis Fed President Neel Kashkari will be speaking at the Woodbury/St. Paul Chamber of Commerce event, in Oakdale.

In the political sphere, the U.S. Senate blocked the Republicans most recent attempt to repeal Obamacare in a floor vote early Friday, dealing another blow which yet again delayed — for the time being — the key campaign goal that eludes the GOP six months into the Trump administration.

Three GOP defections — Sens. Susan Collins of Maine, Lisa Murkowski of Alaska and John McCain of Arizona — sank the measure in a 49-51 vote. McCain, who recently came back to the Senate after being diagnosed with brain cancer, cast his "no" vote to audible gasps on the chamber's floor, according to reporters there.

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In the energy sphere investor sentiment remained optimistic, supported by a recent fall in U.S. inventories and OPEC's continued efforts to rein in the market's oversupply.

Despite the positive sentiment, oil prices were fluctuating between gains and losses during trade.

No auctions are set to take place by the U.S. Treasury on Friday.

—CNBC's Jacob Pramuk contributed to this report.

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