Treasury yields fall amid US-China trade talks

U.S. government debt yields fell on Friday as trade talks between the U.S. and China continued.

The yield on the benchmark 10-year Treasury note fell to around 2.648 percent, while the yield on the 30-year Treasury bond dipped to 3.007 percent. Bond yields move inversely to prices.


Market players continue to monitor the latest round of negotiations between Washington and Beijing. Optimism has risen over the chances of both countries securing a deal to end their protracted trade war, but some experts say the most difficult part is yet to come as high level talks continue into Friday.

"There's obviously an incentive for both sides to reach a deal," James Athey, senior investment manager at Aberdeen Standard Investments, told CNBC's "Squawk Box Europe" on Friday.

"The problem is that you're now getting to the more difficult part of the negotiation, which is things like the IP (intellectual property) problem."

One of President Donald Trump's biggest contentions with Beijing is the claim that the country has stolen intellectual property and trade secrets from American companies. Both nations are a week away from an early March deadline to secure a trade deal, however speculation has risen there may be an extension to that target.

The Federal Reserve, starting on Monday, will hold a series of "Fed Listens" events aimed at getting input from business leaders, community development pros and academics. The central banks hopes to gather advice in a report to be presented in the first half of 2020.

"The economy is constantly evolving, bringing with it new policy challenges. So it makes sense for us to remain open minded as we assess current practices and consider ideas that could potentially enhance our ability to deliver on the goals the Congress has assigned us," Fed Vice Chairman Richard Clarida said during a speech Friday in New York.

— CNBC's Jeff Cox, Ryan Browne and Spriha Srivastava contributed reporting.