Government bonds traded flat Friday after this week's stock market rout pushed key rates to record lows.
There's a growing fear that the U.S. economy may be headed toward a recession. No new economic data was released Friday but JPMorgan Chase & Co. joined other banks and cut its forecast for economic growth for the last three months of the year. It's now predicting growth of 1 percent, down from an earlier forecast of 2.5 percent.
That follows a recent report from Goldman Sachs which put the odds of another recession this year at one in three.
The yield on the benchmark 10-year Treasury note edged up to 2.07 percent Friday from 2.06 late Thursday. It fell briefly below 2 percent on Thursday as stock markets plunged. In afternoon trading, the price of the 10-year Treasury fell 6.25 cents for every $100 invested.
The gloomier outlook has many banks revising their forecasts for long-term interest rates. A few now expect the yield on the 10-year Treasury to end the year below 2 percent as traders buy bonds in search of safety and push yields lower.
In other Friday trading, the 30-year bond rose 56.2 cents for every $100 invested. The higher prices pushed the yield down to 3.39 percent from 3.42 percent on Thursday. The yield on the two-year note edged up to 0.20 percent from 0.19 percent.
The three-month T-bill paid a 0.01 percent yield. Its discount was 0.01 percent.