Bonds

Treasury yields head for second straight weekly decline amid US-China trade uncertainty

U.S. government debt prices fell slightly on Friday as investors monitored trade progress between the world's two largest economies.

Treasurys

The yield on the benchmark 10-year Treasury note, which moves inversely to price, was slightly higher at around 1.7706%, on pace for second straight weekly decline as investors fled to safe assets. The yield on the 30-year Treasury bond fell slightly to 2.2205%.

Market focus is largely attuned to global trade developments, as doubts prevailed over an interim trade agreement between the U.S. and China.

President Donald Trump on Friday said that a long-negotiated trade deal with China is "potentially very close." In early October, the two countries agreed to work on a so-called "phase one" trade deal, but they disagree on whether the existing tariffs should be stripped as the part of the agreement.

During a phone call thought to have been made late last week, China's top trade negotiator invited U.S. officials to Beijing to hold a fresh round of face-to-face negotiations, according to a report from the Wall Street Journal.

It was not clear whether U.S. negotiators had accepted the invitation. However, the Journal's report said that U.S. trade officials were willing to meet with their Chinese counterparts.

The report comes shortly after U.S. legislation on Hong Kong had threatened to derail trade discussions between Washington and Beijing.

On Wednesday, the U.S. House of Representatives passed a bill intended to support protesters in Hong Kong. It prompted China to accuse the U.S. of interfering in domestic affairs.

Consumer sentiment unexpectedly rose in November, according to data released Friday by the University of Michigan.

The university's index of consumer sentiment climbed to 96.8 from 95.5 last month. Economists polled by Dow Jones expected consumer sentiment to dip to 94.9 for November.

There are no major Treasury bond auctions scheduled on Friday.