Treasury yields continued to move lower on Friday with short-maturity rates reaching record lows as investors remained worried about the pace of economic recovery.
The yield on the benchmark 10-year Treasury note, which moves inversely to price, hit a low of 0.520% its lowest level since March 9. The yield on the 30-year Treasury bond fell slightly to 1.176%, its lowest level since April 29.
The rate on the 3- year note hit a new intraday record low of 0.122%. The 5-year yield also reached a new all-time low of 0.214%.
The decline in Treasury yields came as Congress failed to agree on the next coronavirus stimulus deal. The current $600 weekly federal unemployment benefit is expiring Friday.
Meanwhile, U.S. gross domestic product plunged by a record 32.9% in the second quarter, data showed Thursday. The number was not as bad as feared, however, as economists surveyed by Dow Jones had expected a 34.7% decline.
The euro zone economy contracted by 12.1% in the second quarter, the worst reading since the region began tracking the data in 1995. Its largest economies, including Germany, Italy, France and Spain, contracted by double digits during the period due to strict lockdown measures.
"As the toll of the pandemic continues to mount, it's challenging to envision a turn of events that could stoke optimism for the months or even quarters ahead," Ian Lyngen, BMO's head of U.S. rates, said in a note Friday.
Overnight, some of the biggest tech stocks — Facebook, Amazon, Alphabet and Apple — reported quarterly results that beat high expectations, likely fueling a small gain in stock markets for Friday.
— CNBC's Matt Clinch contributed reporting.