By Sunny Oh

Friday trade in Treasurys ended at 2 p.m. Eastern Time

Treasury prices fell on Friday, pushing yields higher, as U.S. equities erased some of the previous session's slump, sapping appetite for government paper.

U.S. bond markets saw a holiday-shortened session (http://www.marketwatch.com/story/as-stocks-gyrate-which-us-markets-are-closed-on-memorial-day-2019-05-23), closing at 2 p.m. Eastern Time, in observance of Memorial Day, and will be closed on Monday.

What are Treasurys doing?

The 10-year Treasury note yield rose 3.2 basis points to 2.327%, trimming its weeklong drop to 6.9 basis points. The 2-year note yield was up 4.5 basis points to 2.175%, marking its biggest daily increase since April 1. The short-dated maturity fell 3 basis points for the week.

The 30-year bond yield rose 2.3 basis points to 2.754%, paring its weeklong decline to 7.1 basis points. Debt prices move in the opposite direction of yields.

Meanwhile, yields for British 10-year pounds , known as gilts, fell a single basis point to 0.955% after U.K. Prime Minister Theresa May announced her resignation due to her inability to pass a Brexit deal.

What's driving Treasurys?

With stock markets set to take a break from this Thursday's selloff (http://www.marketwatch.com/story/us-stock-futures-rise-on-signs-trump-administration-could-soften-huawei-stance-2019-05-24), inflows into the bond-market waned. The S&P 500 and the Dow Jones Industrial Average were on course to end higher on Friday, paring their weeklong losses.

President Donald Trump said he anticipated a "fast" trade deal with China (https://www.cnbc.com/2019/05/24/trump-predicts-fast-trade-deal-with-china-but-provides-no-evidence.html), and that the U.S. could pull back its ban against Huawei Technologies Inc. as part of an agreement. Investors have grown fearful that a resolution to the longstanding trade spat between the U.S. and China would remain elusive, with some pointing to the U.S.'s ban on Huawei as a sign of an entrenching dispute between the two sides.

Yields briefly sagged after investors digested some downbeat data on the business investment front. Durable goods orders for April fell 2.1% (http://www.marketwatch.com/story/durable-goods-orders-slump-21-in-april-and-business-investment-almost-dries-up-2019-05-24), following a 2.6% increase in March. The more stable core capital goods orders measure, which excludes defense and aircraft investment, fell 0.9%.

What did market participants say?

"The more tensions escalate and the longer the negotiations continue, the more uncertainty there will be and become more of a drag be on investment spending in the U.S.," said Ward McCarthy, chief financial economist for Jefferies.

(END) Dow Jones Newswires

May 24, 2019 15:00 ET (19:00 GMT)