Investors jumped back into the Treasury market Friday on concerns that spiking oil prices may stifle the economic recovery.
The price on the 10-year Treasury note rose 53 cents per $100 invested. Its yield, which moves in the opposite direction, fell to 3.50 percent from 3.56 percent late Thursday.
Oil topped $104 a barrel after fighting in Libya intensified. Stocks dropped and investors sought safety in Treasurys. Fears mounted that a sustained rise in oil prices could hurt consumer spending and slow the economy.
Traders appeared to shrug off news that employers added almost 200,000 new jobs in February. The increase in hiring had been expected by most analysts.
The Treasury Department also plans to auction off $32 billion in three-year notes, $21 billion in ten-year notes and $13 billion in 30-year bonds next week.
In other trading, the price of the 30-year bond added 32 cents per $100 invested, while its yield slipped to 4.60 percent from 4.62 percent late Wednesday. The yield on the two-year note dipped to 0.69 percent from 0.77 percent.
The yield on the three-month T-bill fell to 0.11 percent from 0.12 percent. The discount was 0.12 percent.