By Deborah Levine, MarketWatch
NEW YORK (MarketWatch) -- Treasury prices remained lower on Friday, pushing yields up, after a report showed consumer spending rose less than economists expected in December.
Yields on 10-year notes (UST10Y 3.58, -0.05, -1.43%) rose 4 basis points to 3.63%. A basis point is 0.01% and yields move inversely to prices.
Yields on 2-year notes (UST2YR 0.81, -0.05, -5.60%) increased 4 basis points to 0.86%.
The Commerce Department said spending rose 0.2% in December and incomes rose 0.4%. Spending was weaker than expected, while incomes were higher. It also showed consumer prices rose 0.1%. In the past year, consumer prices are up 2.1%, while core prices are up 1.5%. Read more on consumer spending and income.
CRT Capital group called it "a mixed report with income above consensus and spending below, and inflation a non-issue."
Treasurys had been under pressure before the data in sympathy with German bunds, which are watched as a benchmark in Europe. That move was precipitated by an improvement in Greek bonds which have plunged in recent weeks due to the country's fiscal problems.
Still to come is the Institute for Supply Management's index on the U.S. manufacturing sector.
