Treasuries: All eyes on the economy

Click chart for more treasuries data.

NEW YORK (CNNMoney) -- Yields are hovering around their lowest levels of the year, as traders enter a long holiday weekend and end a volatile May, which technically has one more trading day to go.

Concerns about a slowdown in economic growth, coupled with eurozone jitters, have sent traders flocking to the safe haven of the bond market.

Until April, the yield on the 10-year note remained in a tight range -- sitting around the 3.4% mark -- but it didn't last. Over the past several weeks, Treasury prices have steadily risen, pushing yields to five-month lows.

On Friday, the yield on the benchmark 10-year U.S. Treasury edged up to 3.07%. Yields for the 30-year bond rose to 4.25%, the 5-year note fell to 1.72%, and the 2-year note hovered at 0.49%. Bond prices and yields move in opposite directions.

Treasury trading closed early on Friday and will remain closed on Monday, in observance of the Memorial Day holiday.

As investors enter June, much of their focus will be on economic data.

Traders will be looking to the government's closely-watched monthly jobs report on Friday for any signs of improvement in the labor market. After a host of disappointing economic reports -- including a weak GDP report and dismal pending home sales -- the economy has taken center stage.

Don't believe the U.S. default-fear hype

Next month also marks the end of QE2, the Fed's $600-billion bond buying program.

"Without the Fed buying and the way numbers are stacking up," the daily, weekly, and monthly economic reports will carry even more weight, said Kevin Giddis, managing director of fixed income at Morgan Keegan.

As to whether the 10-year yield will continue to decline, Giddis says it's a waiting game and depends on whether economic reports continue to come in worst than expected.

"As we wrap [May] up, there's not a great story for much lower yields, but even less of a story for higher yields," he said.