After seeing early weakness, treasuries moved back to the upside over the course of the trading day on Friday, ending the day flat.
Bond prices climbed well off their early lows but were unable to sustain the upward move. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, ended the day unchanged at 1.702 percent after reaching a high of 1.743 percent.
The early weakness among treasuries came as traders cashed in on some of the recent strength in the bond markets, which drove the ten-year yield to a record closing low on Thursday.
Selling pressure remained subdued, however, as traders continued to express concerns about the ongoing political uncertainty in Greece.
However, a note from Capital Economics said, "All things considered, we don't expect Greece's eventual exit from the euro-zone to have any devastating impact on the US economy, even if the exit from the single currency is compounded by a Greek banking collapse and/or a further sovereign debt default."
"The trade links are pretty modest," the firm said. "Only 0.1 percent of U.S. exports go to Greece and less than 3 percent go to the five peripheral euro-zone countries combined. The financial links also look to be manageable."
Developments overseas are likely to remain in focus next week, although traders are also likely to keep an eye on U.S. reports on new and existing home sales, durable goods orders, and consumer sentiment.
For comments and feedback: editorial@rttnews.com