NEW YORK (CNNMoney) -- U.S. treasury prices rose during a shortened trading session Friday, ending a volatile year on a positive note.
The price on the benchmark 10-year note rose slightly, pushing the yield down to 3.30% from 3.37% late Thursday. Bond prices and yields move in opposite directions. The yield on the 30-year bond fell to 4.33%, while the yield on the 2-year note edged down to to 0.60%. The 5-year note's yield slipped to 2.01%.
Trading volume remained light amid the year-end holiday period.
U.S. debt, which is considered a safe haven, was an attractive asset to investors during the earlier part of 2010, as concerns over Europe's sovereign debt issues were at the forefront.
But as those worries faded, so did the appeal for Treasuries. That has sent yields higher, especially as better-than-expected economic news bolstered demand for riskier asset. After hitting a low below 2.4% in early October, the benchmark yield finished the year at 3.3%.
As traders get back in gear for 2011 next week, analysts expect yields will continue rising as the economy recovers, despite the Federal Reserve's attempt to push rates lower.
In November, the Fed announced it will pump $600 billion into the economy by June through purchases of long-term Treasuries. As part of the program, which winds down during the middle of next year, the central bank is expect to scoop up more Treasuries next week.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.98%||4.07%|
|15 yr fixed||3.16%||3.24%|
|30 yr refi||3.99%||4.08%|
|15 yr refi||3.18%||3.24%|
Today's featured rates:
Legendary investor Bill Gross has reached an $81 million truce with Pimco, ending a war with the firm he built into the world's biggest bond manager. More
Republicans and the White House have been talking about the next big thing they'll address: tax reform. But their biggest focus seems to be tax cuts. More
For 25 years Miguel Caballero has been outfitting the world's VIPs with his stylish, bulletproof clothing line that shares his name. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The New York property, which was the first home of the 45th president of the United States, was purchased on March 23 for $2.14 million -- a nearly 54% profit for the previous owner who bought it just month's earlier. More