By Deborah Levine, MarketWatch NEW YORK (MarketWatch) -- Treasury prices turned lower in early U.S. trading hours on Friday, pushing yields up and putting bonds on pace for a weekly loss after the government sold billions of dollars in debt. With little economic data to drive trading, analysts noted improvements in equity markets. Yields on 10-year notes (UST10Y 3.89, +0.04, +0.91%) were up 2 basis points to 3.91%. Yields move inversely to prices and a basis point is 0.1%. Yields on 2-year notes (UST2YR 1.06, +0.02, +1.53%) rose 2 basis points to 1.09%. Yields on 10-year notes ended last week at 3.86%, while 2-year debt yielded 1.05%. "We didn't like the price action after the bond auction and feel if stocks continue on firmer footing bonds should start to see profit taking into the weekend," said Thomas di Galoma, head of fixed-income-rates trading at Guggenheim Partners. The only U.S. economic data due for release are wholesale inventories at 10 a.m. Eastern time. Bonds have recovered much of the big losses earlier in the week, as a string of debt auctions drew strong demand from investors. Read about bond auction. "We learned this week that if you offer Treasury yields at range highs, the buyers will come," said bond strategists at RBS Securities. "The range survives a severe test this week. Look for Treasury 10-year yields to trade 3.70% to 4.00% in the coming month."

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