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U.S. Treasury prices advanced Friday after a strong reception for this week's Treasury auctions encouraged further buying, overwhelming a batch of data that could have been deemed negative for bonds.
Demand for the Treasury's three debt auctions this week sent some yields to their lowest since July and demonstrated, as so many auctions have this year, that demand for U.S. debt is solid, at least as long as the economic outlook remains uncertain.
The persistent demand for U.S. government securities overshadowed Friday's positive economic data, including a September improvement in consumer sentiment, higher import prices and a big drawdown in wholesale inventories.
"This is not a data-driven market," said John Spinello, chief fixed-income technical strategist at Jefferies & Co in New York. "There's insatiable demand and the market remains short. There are no willing sellers."
Thirty-year Treasury bonds rose more than a point in price, their yields easing to 4.13 percent from 4.21 percent late Thursday.
Benchmark 10-year notes climbed 18/32, their yields easing to 3.29 percent from 3.36 percent Thursday.
"The market is awash in cash and everyone is forced to be a yield hog," said Chris Rupkey, chief financial economist at Bank of Tokyo/Mitsubishi UFJ in New York.
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