By Joseph Adinolfi, MarketWatch

Investors are bracing for President-elect Donald Trump to take the oath of office

Treasury yields on Friday didn't see sizable action on the day, but notched their first weekly rise in a month, after President Donald Trump took the oath of office.

The yield on the 10-year Treasury note rose 0.6 basis point on Friday, and 8.7 basis points this week, to finish at 2.466%. The yield on the two-year note fell 0.3 basis point on Friday to 1.225%, but finished the week 0.2 basis point higher, its second weekly gain in the past three. The yield on the 30-year bond climbed 1.1 basis point to 3.046%, up seven basis points on the week. Bond yields, which move inversely to prices.

The recent climb in yields suggest that a spate of buying in bonds that has pushed yields lower has run out of steam, said Tom Tucci, managing director and head of Treasury trading at CIBC World Markets Corp.

"Part of the run-up was a short covering bid just because there wasn't any new information," Tucci said. "There has been a lot of talk about what Trump will push through, but there is still no hard facts on infrastructure spending or tax cuts."

A short-covering rally occurs when investors, who had borrowed an asset and sold it with the expectation that the price would drop, rush to buy them back before losses accrue. Trump's election win in November unleashed a spate of selling in Treasurys on the back of pro-growth policy proposals, including an increase in fiscal spending, that would be bearish for bonds.

Trump's inaugural address on Friday (http://www.marketwatch.com/story/the-full-text-of-president-donald-trumps-inaugural-address-2017-01-20), in which he said he would promote "America first," echoed a protectionist stance he has maintained for the better part of his campaign, but didn't provide any new insights into his legislative agenda.

On the week, Treasury notes took their cues from Federal Reserve Chairwoman Janet Yellen, who said late Thursday, and at other occasions during the week, that there are few signs that the economy is overheating, and that she sees no reason to rapidly raise interest rates.

"The bottom line is: the market is still pricing in the potential of the Fed raising rates three times this year," Tucci said. The Fed raised interest rates in December for the second time in a decade. A set of projections released concurrently with its interest-rate decision last month showed a plurality of Fed policy makers expect to raise rates three times in 2017, up from two in September.

Philadelphia Federal Reserve President Pat Harker, a voting member of the Fed's rate-setting committee, on Friday reiterated Yellen's view on the pace of rate increases.

(END) Dow Jones Newswires

January 20, 2017 16:00 ET (21:00 GMT)