From Standard & Poor's MarketScope: Treasury prices were recovering in early trading on Friday, after San Francisco Fed President Janet Yellin said in a speech late Wednesday that the Fed must maintain economic stability.
The 10-year notes were up in price by 05/32 to 101-02/32 for a yield of 4.124% and the 30-year bonds were up by 16/32 at 114-28/32 for a yield of 4.401%.
Yellin said the Fed needs to maintain its credibility as an inflation fighter, a reputation it acquired under the long leadership of Chairman Alan Greenspan. A few economists and several congressmen want the Fed to pause its credit tightening program following the damage that Hurricane Katrina caused the economy.
Values have been buffeted in recent weeks amid speculation about the Fed's stance on interest rates.