By Deborah Levine
SAN FRANCISCO (MarketWatch) -- Treasury prices rose on Friday, pulling benchmark yields down this week from their highest level in eight months, as long-term worries about steps Washington still needs to take and confidence in the Federal Reserve's buying prevented a continuation of the prior week's massive selloff. Yields on 10-year notes 10_YEAR +0.16% , which move inversely to prices, slipped 1 basis point to 1.90%. The U.S. government is expected to have to get through a contentious debate in coming months over budget cuts, that under pretty much all options imply a slowdown in spending that will weigh on growth prospects. "We still believe that the fiscal coin-flip (resulting in a drag) and Fed buying keeps U.S. Treasurys bid," said George Goncalves, a bond strategist at Nomura Securities.
