Treasurys gain on global economic jitters

NEW YORK (CNNMoney.com) -- Treasurys rose Friday as concerns about struggling European economies overshadowed a mixed U.S. jobs report and boosted demand for safe-haven assets.

What prices are doing: The benchmark 10-year note gained 10/32 to 98-13/32, pushing the yield down to 3.56% from 3.61% late Thursday. Prices and yields move in opposite directions.

The 30-year bond added 15/32 to trade at 97-21/32 and its yield was 4.51%. The 2-year note ticked up 2/32 to 100-6/32, yielding 0.75%.

What's moving the market: Treasurys posted a weekly gain as investors turned cautious amid worries about the global economy.

The advance came during a week full of top-tier economic reports, including the U.S. government's closely watched monthly jobs report.

The Labor Department said earlier Friday that employers cut 20,000 jobs in January after a revised loss of 150,000 jobs in December. Economists surveyed by Briefing.com had expected a net gain of 15,000 jobs in December.

But the report also said the lukewarm job growth initially reported in November was actually much stronger than previously believed. And the the unemployment rate eased to 9.7% from 10%.

"The jobs report certainly captured attention early on," said Kim Rupert, a fixed-income analyst at Action Economics. "But now we're back to overseas issues such as concerns about sovereign debt and budget deficits."

She said traders are worried that the fiscal problems facing Greece, Portugal and Spain could hinder economic growth in Europe and stifle the fragile recovery there.

There is also some concern that the problems in Europe could foreshadow a similar crisis in the United States.

"We're suffering from the exact same problems," Rupert said. "If we don't get our fiscal house in order we could face the same thing," she said, adding that those worries are not currently reflected in the market.

What's on tap: The nation's debt load and budget deficit will be in focus next week when the U.S. Treasury Department auctions $81 billion in bonds.

As part of its quarterly refunding, the Treasury plans to bring $40 billion worth of 3-year notes to market on Tuesday; $25 billion in 10-year notes next Wednesday; and $14 billion in 30-year bonds on Thursday. The auctions will settle on Feb. 16.

"In this environment the auctions should go well," Rupert said, adding that Treasurys could come under some selling pressure after the auctions.

On Wednesday, traders will take in the Treasury budget report for January. Economists surveyed by Briefing.com expect the report to show a deficit of $60 billion for the month, down from $92 billion the month before.

Other economic reports due next week include monthly retail sales figures, the U.S. trade balance for December and the government's weekly jobless claims data.