Treasury prices fell after multiple reports said Steve Bannon, one of President Donald Trump's top advisors, was leaving the administration.
Bannon had been the advisor pushing the hardest for a more nationalistic approach to U.S. economic policy, but had clashed regularly with other advisors, including chief economic advisor Gary Cohn and Lieutenant General H.R. McMaster.
Turbulence surrounding President Donald Trump's leadership, economic policies and his recent statements on the white supremacist rally in Virginia, continue to weigh on sentiment.
Meanwhile in Spain, a manhunt is currently underway as police try to locate the driver of a van who plowed into crowds in one of Barcelona's tourist hotspot areas, which left at least 13 people dead and over 100 injured.
The perpetrator was seen escaping on foot after driving into pedestrians on Las Ramblas in the late afternoon on Thursday; an incident which police suspect was one of a number of planned attacks.
Three men have been arrested, while police killed five terror suspects in Cambrils, a nearby town, to thwart an attack which involved explosive belts.