NEW YORK (CNNMoney.com) -- Treasurys rallied Friday on news Goldman Sachs has been charged with fraud by Securities and Exchange Commission.
What prices are doing: The benchmark 10-year note rose 17/32 to 98-27/32, pushing the yield down to 3.77%. The 30-year bond rose 22/32 to 99-8/32, and its yield fell to 4.67%.
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| Click the chart for current prices and yields. |
Bond prices and yields move in opposite directions.
The 2-year note edged up 4/32 to 100-3/32 with a 1% yield. The 5-year note rose 11/32 to 100-4/32 with a yield of 2.48%.
What's moving the market: On Friday, the SEC charged Goldman Sachs with fraud related to how it sold securities tied to subprime mortgages.
The news sent stocks tumbling, particularly financial firms, and pushed the demand for U.S. bonds higher.
Meanwhile, investors are closely watching the heated debates on Capitol Hill, as lawmakers consider Wall Street reform. If investors feel financial reform could be unfriendly to the stock market, they're likely to put their money elsewhere -- such as in government bonds, which are considered a lower risk investment for the long term.
What analysts are saying: "Today it's about an instantaneous reaction to the news," said Jim Vogel, head of agency debt research at FTN Financial, in a statement to investors. "Moving ahead, however, investors need to recalibrate their expectations of the strength of financial reform legislation moving quickly through Washington."
The rally in Treasury prices Friday could have longer legs than expected, Vogel said, if the news causes decision makers at major companies to rethink their investment strategies for the near term.
Looking ahead: But Kevin Giddis, president of fixed income at Morgan Keegan, said in an e-mail to investors Friday that he doesn't think bonds will hold their gains. Larger trends such as continued concerns about Greece's debt crisis and inflation, or a lack of it, are likely to continue underpinning Treasurys, he said.
"For the next 10 days, the bond market will be leaning on momentum and economic numbers to drive the markets," Giddis said. "Headline risk and volcanic ash (referring to European travel disruption from the Iceland volcano) will lurk in the shadows, but mostly it will be about the strength of the U.S. economic recovery as evidenced through numbers." 
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 3.80% | 3.88% | |
| 15 yr fixed | 3.20% | 3.23% | |
| 5/1 ARM | 3.84% | 3.88% | |
| 30 yr refi | 3.82% | 3.93% | |
| 15 yr refi | 3.20% | 3.23% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 32,627.97 | -234.33 | -0.71% |
| Nasdaq | 13,215.24 | 99.07 | 0.76% |
| S&P 500 | 3,913.10 | -2.36 | -0.06% |
| Treasuries | 1.73 | 0.00 | 0.12% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Ford Motor Co | 8.29 | 0.05 | 0.61% |
| Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
| Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
| General Electric Co | 13.00 | -0.16 | -1.22% |
| Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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