Treasury yields dipped on Friday as traders digested more disappointing economic data.
The declines came after the Commerce Department said Friday that U.S. durable goods orders increased just 0.4% in August, versus a Dow Jones estimate of a 1.8% rise and a 11.7% jump in July.
However, orders for non-defense capital goods excluding aircraft, or core capital goods, rose 1.8% last month, which is better than expected.
"I continue to believe the bounce in manufacturing is due to the need to rebuild inventories after the economy was about fully shut down for two months," Peter Boockvar, chief investment officer at Bleakley Advisory Group, said in a note.
Treasury yields had come under pressure on the back of weak jobless claims on Thursday. First-time claims for state unemployment benefits totaled 870,000 for the week ending Sept. 19, higher than a Dow Jones estimate of 850,000.
In the meantime, Democrat lawmakers are reportedly working on a small stimulus package as the U.S. economy keeps grappling with the implications of the coronavirus pandemic.
New York Fed President John Williams will speak at 9 a.m. ET and at 3:10 p. m. ET.
— CNBC's Silvia Amaro contributed reporting.