NEW YORK (MarketWatch) -- Treasury prices increased modestly early Friday before data that some analysts expect will show an increase in capital inflows to the U.S. Other reports on industrial production, capacity utilization, and consumer confidence will be watched for indications of the economy's ability to continue recovering. Ten-year note yields slipped 1 basis point to 3.45%. Traders said that yields near 3.50% may likely bring buyers back to U.S. debt.