US Treasury yields rise after Trump announces deal to end government shutdown

U.S. government debt yields rose on Friday after President Donald Trump announced that he had reached a deal with congressional lawmakers to reopen the federal government for three weeks.

The yield on the benchmark 10-year Treasury note was up at 2.755 percent at 1:11 p.m. ET, while the yield on the 30-year Treasury bond rose, trading at 3.06 percent. Bond yields move inversely to prices.

The short-term resolution would leave open the possibility that lawmakers fail to come to terms and end up at another impasse in mid-February.

The remarks on the 35th day of the closure came amid calls from senators of both parties to temporarily fund the government while they try to strike a wider immigration deal. Lawmakers have floated a three-week continuing resolution to reopen nine unfunded U.S. departments.

Until now, Trump has insisted that any funding bill include cash for a U.S.-Mexico border wall, representing a longstanding campaign promise to crack down on immigration. Prices of Treasurys often move in the opposite direction of stocks, as investors shift money between riskier and safer assets.

The U.S. Senate blocked bills on Thursday to fund the government.

A Republican-backed proposal and a measure supported by Democrats didn't acquire the 60 votes they needed to be cleared. The Democratic plan to reopen the government without funding for the president's border wall, received more votes in the GOP-held chamber.

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As another trading week draws to a close, jitters continue to reverberate across markets as concerns surrounding the U.S.-China trade talks resurface.

On Thursday, markets were rattled after U.S. Commerce Secretary Wilbur Ross said that trade negotiations with China were far from complete. "We would like to make a deal but it has to be a deal that will work for both parties," Ross told CNBC. "We're miles and miles from getting a resolution."

Ross' comments come as Washington and Beijing try to remedy their trade disputes, during a tariff cease-fire which is slated to finish at the start of March.

CNBC's Jacob Pramuk contributed to this report