By Sunny Oh

Treasury prices fell Friday, pushing yields higher, after Chinese state media suggested a resumption in trade negotiations may not take place as soon as anticipated.

What are Treasurys doing?

The 10-year Treasury note yield fell 3 basis points to 2.375%, while the 2-year note yield slipped 3.8 basis points to 2.169%. The 30-year bond yield was down 2 basis points to 2.820%. Bond prices move in the opposite direction of yields.

What's driving Treasurys?

Commentary by the blog Taoran Notes, associated with the state-run Economic Daily newspaper, said (https://www.bloomberg.com/news/articles/2019-05-17/china-not-interested-in-talking-with-u-s-for-now-state-media) unless the U.S. was sincere, it did not make sense for Chinese officials to come to Washington to resume trade talks, a sign that Beijing's window to negotiate a trade deal may have narrowed.

China's Commerce Ministry said it did not know of Treasury Secretary Steven Mnuchin's planned visit, following his announcement on Wednesday that he would likely fly to Beijing soon to continue negotiations,

The escalation of Beijing's rhetoric dampened appetite for equities and boosted haven assets. Futures for the S&P 500 and the Dow Jones Industrial Average pointed to a lower open for U.S. equities. China's CSI 300 index lost 2.5% on Friday, FactSet data show.

What else is on investors' radar?

Investors will get a look at some second-tier data. The University of Michigan's consumer sentiment index for May and the Conference Board's leading economic indicators for April will both come out at 10 a.m. Eastern.

Key officials from the Federal reserve will also hold several speeches on Friday. New York Fed President John Williams will meet the Community League of the Heights in New York City at 11:15 a.m. Eastern. Later, Fed Vice Chairman Richard Clarida will speak at a Fed listening session in Philadelphia, Pa., at 1:40 p.m.

(END) Dow Jones Newswires

May 17, 2019 08:37 ET (12:37 GMT)