By Sunny Oh

Friday trade in Treasurys will end at 2 p.m. Eastern Time

Treasury prices fell on Friday, pushing yields higher, as U.S. equities looked to recover from the previous session's slump, sapping appetite for government paper.

U.S. bond markets will see a holiday-shortened session (http://www.marketwatch.com/story/as-stocks-gyrate-which-us-markets-are-closed-on-memorial-day-2019-05-23), closing at 2 p.m. Eastern Time, in observance of Memorial Day, and will be closed on Monday.

What are Treasurys doing?

The 10-year Treasury note yield climbed 3.1 basis points to 2.327%, while the 2-year note yield was up 3.5 basis points to 2.164%. The 30-year bond yield rose 2.8 basis points to 2.760%. Debt prices move in the opposite direction of yields.

Meanwhile, yields for British 10-year pounds , known as gilts, was at 0.961%, compared with 0.951% on Thursday, after U.K. Prime Minister Theresa May announced her resignation due to her inability to pass Brexit.

What's driving Treasurys?

With stock markets set to take a break from this Thursday's selloff (http://www.marketwatch.com/story/us-stock-futures-rise-on-signs-trump-administration-could-soften-huawei-stance-2019-05-24), inflows into the bond-market waned. Futures for the S&P 500 and the Dow Jones Industrial Average showed U.S. equities were set to climb at the open.

President Donald Trump said he anticipated a "fast" trade deal with China (https://www.cnbc.com/2019/05/24/trump-predicts-fast-trade-deal-with-china-but-provides-no-evidence.html), and that the U.S. could pull back its ban against Huawei Technologies Inc. as part of an agreement. Investors have grown fearful that a resolution to the longstanding trade spat between the U.S. and China would remain elusive, with some pointing to the U.S.'s ban on Huawei as a sign of an entrenching dispute between the two sides.

What else is on investors' radar?

Investors will get a handle on some data. Durable goods orders for April is set for release at 8:30 a.m., with economists expecting a fall of 2.4%, following a 2.6% increase in March.

(END) Dow Jones Newswires

May 24, 2019 07:49 ET (11:49 GMT)