It was a quiet trade lower Friday, with the absence of foreign exchange intervention despite further U.S. dollar slippage, and a move by Pakistani troops closer to capturing Al Qaeda Chief Zawahiri, the back drop for the selloff.

Treasuries opened lower, follow-through after the Japanese press reported that Japan authorities may reduce currency intervention. Prices sat in a tight range, as the Street awaited news as Pakistani troops continued to surround Al Qaeda. Retail participation was next to nil, lured by spread product.

But the moribund trade was upset by the Fed's $824 million coupon pass (5/2008 - 2/2012). Treasuries turned briefly positive, but upticks continued to attract sales. A couple of large corporate bid lists and souring technicals pushed prices to the lows by the close. From Informa Global Markets