US corporate bond spreads were mostly unchanged on Friday in sparse dealings ahead of an early market close for the Memorial Day holiday weekend.
"It's one of those days where we didn't even open, basically," said Robert Cartwright, head of taxable fixed-income trading at William Blair LLC. "Everyone's taking a breather and coming back Tuesday."
Next week should be more eventful, with potentially market-moving data on the labour market and auto sales on tap, strategists said.
On Wednesday, investors will be watching automakers' May vehicle sales numbers to judge whether higher fuel prices are cutting into demand for gas-thirsty SUVs and trucks.
Nonfarm payroll data next Friday will be closely watched for clues on how soon and aggressively the Federal Reserve is likely to start raising interest rates.
Bonds of Delta Air Lines Inc were mixed after plunging nearly eight points on Thursday on news that the company has hired the Blackstone Group for restructuring advice. Delta has warned it will likely file for bankruptcy protection if its pilots do not grant major wage concessions.
"Ultimately, we think they will get a deal done with the pilots, but the news is so negative, we think the bonds will remain under pressure for a while," said Clark Orsky, analyst at KDP Investment Advisors.
Delta's 10.375 percent notes due 2011 traded at 53 cents on the dollar, up two cents on the day after tumbling 7.5 cents on Thursday. Its 8 percent bonds of 2023 fell 3.5 cents to 54 cents on the dollar.
In other markets, US Treasuries fell after surprisingly strong Midwestern manufacturing data renewed worries that interest rates may rise. Benchmark 10-year notes declined 7/32 to yield 4.64 percent.
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