NEW YORK (MarketWatch) -- Treasurys remained higher on Friday after a government report said retail sales fell more than expected in October. Two-year note yields fell 4 basis points to 1.20%, remaining near the lowest in five years. Retail sales fell 2.8% last month, the Commerce Department said. Excluding automobiles, sales fell 2.2%. Economists surveyed by MarketWatch expected total sales to decline 2.3% and sales excluding autos to fall 1.7%. The Reuters/University of Michigan Surveys of Consumers results for early November will follow the retail report and are expected to show another drop in sentiment. Federal Reserve Chairman Ben Bernanke said in a speech in Frankfurt that challenges remain for the global economy and policy makers stand ready to take additional action should conditions warrant. Treasurys were up earlier as reports showed that the 15-nation euro zone fell into a recession and Citigroup may cut 10,000 jobs.
