NEW YORK: US Treasury yields rose on Friday, with 10-year yields bouncing from a one-week low, as Wall Street stocks climbed on upbeat company results, offsetting worries about slowing economic growth and the US-China trade conflict.
Looming Treasury supply next week together with caution ahead of the Federal Reserve's policy meeting and the government's payrolls report added upward pressure on bond yields.
"The market is getting its cue from the equity market," said Subadra Rajappa, head of US rates strategy at SG Corporate & Investment Banking in New York.
At 10:24 a.m. (1524 GMT) the yield on benchmark 10-year Treasury notes was 3.8 basis points higher at 2.750 percent. It hit a one-week low of 2.700 percent on Thursday.
Two-year Treasury yields, which are particularly sensitive to traders' views on Fed policy, were up 2.6 basis points at 2.588 percent.
The S&P 500 was up 0.9 percent, while the Dow was 1.1 percent higher and the Nasdaq rose 1 percent.
Interest rates futures implied traders expected about a 25 percent chance the Fed would raise key lending rates by the end of 2019, up from 22 percent late on Thursday, according to CME Group's FedWatch program.
The Fed will hold its first policy meeting of 2019 next week, on Tuesday and Wednesday.
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