By Sunny Oh

Prices for U.S. government bonds softened Friday, pushing up yields, as a rally in global stocks held back appetite for haven assets like U.S. government paper.

The 10-year Treasury note yield rose 4.1 basis points to 2.788%, extending a weeklong rise from last Friday's closing level of 2.699%. The 2-year note yield picked up 4.6 basis points to 2.612%, while the 30-year bond yield advanced 2.2 basis points to 3.098%, its highest levels since Dec. 17. Bond prices move in the opposite direction of yields.

U.S. equities were on track to post their fourth straight gain, while stock markets in Asia and Europe were on the rise. The Shanghai Composite finished higher, and the Stoxx Europe 600 index was up sharply.

See: China has offered to ramp up U.S. import purchases to $1 trillion per year: report (http://www.marketwatch.com/story/china-has-offered-to-ramp-up-us-import-purchases-to-1-trillion-per-year-report-2019-01-18)

Bloomberg News reported China would increase purchases of U.S. imports over six years to more than $1 trillion annually, which would close the U.S. trade deficit with China by 2024 (http://www.marketwatch.com/story/china-has-offered-to-ramp-up-us-import-purchases-to-1-trillion-per-year-report-2019-01-18). Reuters also reported (https://www.reuters.com/article/us-usa-china-trade-exclusive/exclusive-us-pushing-for-regular-review-of-china-trade-reform-progress-idUSKCN1PC2AG) that U.S. officials were seeking regular assessments of China's progress on trade reforms, a move that could satisfy U.S. Trade Representative Robert Lighthizer's demands for a way to verify China's pledges on trade.

The raft of trade-related developments follows Thursday's Wall Street Journal report (http://www.marketwatch.com/story/us-stock-futures-extend-gains-as-investors-cling-to-hope-of-trade-resolution-2019-01-18)that U.S. officials were debating rolling back tariffs on Chinese imports to push Beijing into making greater concessions. A Treasury Department spokesman, however, insisted the U.S. negotiating stance was still at the discussion stage, and that Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer had yet to make trade-related recommendations.

"Reflection and introspection about the sagacity of the U.S. tariffs is probably taking place within the administration," said analysts at Macquarie.

"The U.S. Treasury after all, often takes the role of the economy's protector, so it makes sense that any request for a review or re-examination of the tariffs would come from the Treasury Department," they said.

As for data, industrial production numbers for December rose 0.3%, amid growing interest if U.S. factories are slowing down from tariff-related trade tensions The University of Michigan's consumer sentiment survey for January, however, fell to 90.7 from 98.3.

New York Federal Reserve President John Williams said the central bank should act more cautiously in the face of a softer economic outlook, echoing calls for the Fed to pause its hiking cycle and watch see how economic data shakes out before pressing forward with further increases.

(END) Dow Jones Newswires

January 18, 2019 14:35 ET (19:35 GMT)