Treasurys mixed amid sentiment shift

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NEW YORK (CNNMoney.com) -- Treasurys were mixed Friday as investors digested this week's record auctions and eyed gains in more risky markets.

The government successfully sold $81 billion worth of Treasurys in three separate auctions this week, easing some concerns about softening demand for U.S. debt.

A sale of 30-year bonds on Thursday received lackluster demand, but earlier auctions of 3-year and 10-year notes were both well subscribed.

Overall, investors submitted bids totaling more than $239 billion in response to the $81 billion worth of Treasurys sold. Indirect bidders, a category that includes foreign central banks, bought one-third of the total offering.

This week's debt sale was the latest in a string of record-sized auctions the U.S. has held this year to fund its economic recovery efforts and growing budget deficit.

While demand continues to be strong, many analysts say the ongoing flood of new issues could eventually weigh on Treasury prices.

Bond prices have been supported recently by comments from Federal Reserve officials suggesting the U.S. economy will recover at a sluggish pace and that inflation will remain subdued.

The market is now gearing up for a number of economic reports due out next week, including a closely watched inflation gauge, retail sales figures and regional manufacturing data.

"Recent comments from Fed members suggest the backdrop of economic growth and inflation will remain price supportive," Nick Kalivas, vice president of financial research at MF Global, wrote in a research report.

"However, the economy does show signs of improvement and supply will remain heavy," he added.

Meanwhile, U.S. stock futures were signaling a stronger opening. European markets were mixed, while Asian shares closed mostly lower.

Bond prices. The benchmark 10-year note was up 5/32 to 99-18/32 and its yield fell to 3.429% from 3.446% late Thursday. Bond prices and yields move in opposite directions.

The 2-year note edged higher to 100-12/32 with a yield of 0.815%.

The 30-year bond fell 1-15/32 to 100-9/32 and its yield was 4.361%.