Treasuries saw modest strength during trading on Friday, as some traders looked to the safety of U.S. government-backed bonds ahead of this weekend's elections in Greece.
Bond prices moved to the upside in early trading and remained in positive territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.4 basis points to 1.587 percent.
The strength among treasuries came as traders expressed some uncertainty about the outcome of the elections in Greece, which will have a significant impact on whether the debt-plagued nation sticks to the terms of its international bailout.
Buying interest may also have been generated by optimism about the possibility of further stimulus from the world's central banks, including further quantitative easing from the Federal Reserve.
Adding to the optimism, the U.K. government and the Bank of England announced additional measures to boost the credit and financial markets.
The measures will offer banks billions of pounds in cheap credit in an effort to stimulate lending while also providing access to short-term money to deal with "exceptional market stresses."
A disappointing batch of U.S. economic data also seemed to provide further evidence that the economy needs additional stimulus to avoid a double-dip recession.
The Federal Reserve released a report showing an unexpected drop in industrial production in May, while a separate report from Thomson Reuters and the University of Michigan showed a substantial deterioration in consumer sentiment in June.
While the outcome of the Greek elections is likely to drive trading in the early part of next week, the focus will quickly shift to the Federal Reserve's monetary policy announcement on Wednesday.
Several key U.S. housing reports are also scheduled to be released next week, although they are likely to be overshadowed by any news from the Fed.
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