Bonds

Treasury yields rise slightly amid US-China trade tensions

U.S. government debt prices were lower and yields higher on Friday as investors turned cautious over trade developments between the world's two largest economies.

Treasurys

The yield on the benchmark 10-year Treasury note, which moves inversely to price, rose slightly to 1.7921%, while the yield on the 30-year Treasury bond was also higher at 2.2261%.

Market participants will observe a shortened trading session on Friday, following Thursday's Thanksgiving holiday.

Earlier this week, President Donald Trump signed into law two bills supporting Hong Kong protesters. The laws, which were introduced to protect Hong Kong's rights and autonomy, threaten to torpedo efforts to end a protracted trade dispute between the U.S. and China.

China's Ministry of Foreign Affairs responded to the move by accusing the White House of having "sinister intentions," before adding it would take "firm counter measures" if the U.S. continued to interfere in Hong Kong.

It is thought the episode could dash hopes of Washington and Beijing reaching a so-called "phase one" trade deal, which had moved markets higher earlier in the week.

The U.S. and China have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

There are no Treasury bond auctions or major economic data reports set to be released on Friday.