Treasury yields were edging lower on Friday as bonds recovered tentatively.
Yields rose significantly after data Thursday showed U.S. producer prices rose much more than forecast in July. This reignited inflation fears and damped prospects of a Federal Reserve interest-rate cut in September.
Views could change again, however. U.S. data Friday in the form of retail sales and the University of Michigan’s consumer confidence survey could highlight the fragility of the U.S. economy and restore rate-cut expectations.