By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices and the dollar held onto solid gains on Friday after the Reuters/University of Michigan index rose to 73.3 in May from 72.2 in April, according to reports. The dollar index (DXY 85.50, +0.30, +0.35%) , which tracks the performance of the greenback against a basket of other major currencies, rose to 85.917 from 85.339 in late New York trading on Thursday. The euro (CUR_EURUSD 1.2441, -0.0081, -0.6469%) fell to $1.2429, from $1.2536 Thursday. Yields on 10-year notes (UST10Y 3.44, -0.09, -2.41%) , which move inversely to prices, fell 9 basis points to 3.45%. U.S. bonds and the dollar were higher before the data as reports about political discord in Europe reignited worries about the region's stability driving the euro to a 17-month low, sparking a flight to quality.
