U.S. government debt prices on slipped Friday as investors grew more optimistic the U.S. and China could reach a limited agreement as top negotiators resumed their second day of talks.
Market focus is largely attuned to trade developments, with U.S. President Donald Trump due to meet Chinese Vice Premier Liu He at the White House on Friday.
President Trump called talks between high-level officials from the world's two largest economies on Thursday "very, very good."
The U.S. Federal Reserve on Thursday unveiled a final package of rules loosening the capital and liquidity requirements imposed on foreign and U.S. banks in the wake of the global financial crisis.
Cleveland Fed President Loretta Mester said on Thursday that the U.S. economy will likely avert a serious downturn despite trade and global slowdown risks, advocating against any further rate cuts from the central bank.
No Treasury auctions are scheduled for Friday.