U.S. Treasurys prices fell on Friday, with five-, seven- and 10-year note yields setting 22-month highs, on jitters over when the Federal Reserve is likely to begin to pare back its bond-buying program.
U.S. government bonds have been hurt alongside most assets since Fed Chairman Ben Bernanke said on Wednesday that the economy is on track for further improvement and that the U.S. central bank is likely to reduce purchases as a result.
"We see the continuation of the trend. People are clearing all fixed income paper as quickly as they can," Jason Rogan, managing director at Guggenheim Capital Markets, told CNBC.
Investors expect Federal Reserve officials to say something to curb yields' run when they speak next week. The next important level for the 10-year notes is 2.57 percent, he said.
Benchmark 10-year Treasurys last traded 30/32 lower for a yield of 2.531.
Apart from the possible clarification from the Fed next week, the yield may react to the stock market performance. If stocks gain for a few consecutive days, that may alleviate the pressure on yields, Rogan added.
Prices on the U.S. 30-year Treasury bond fell more than 1 point on Friday with its yield rising to the highest level in more than 22 months.
The 30-year bond last traded 1-2/32 lower in price for a yield of 3.583 percent, up 6.6 basis points from late on Thursday.
The Fed has been expanding its balance sheet with trillions of dollars of bond purchases since 2009 to drive down interest rates, encourage borrowing and help stimulate the economy and the labor market. Investors are now grappling with what effect it will have on markets when the Fed pulls back that stimulus.
"It's all one big unwind. That's been a negative for Treasurys as hedges are unwound," said Sean Murphy, a Treasurys trader at Societe Generale in New York.
Five-year and seven-year notes, which are the most sensitive to Fed rate policy, were again the worst performers on Friday
(Read More: Global Markets Feel the Sting of Fed's Tapering)