Treasurys remained higher early Friday after a government report said the U.S. economy shrunk 3.8% in the fourth quarter of 2008, the worst since 1982. Yields on two-year notes , which move inversely to the price, fell 6 basis points to 0.90%. Economists surveyed by MarketWatch expected gross domestic product to contract 5.5% in the three months ended in December. The report's inflation measure excluding food and energy, closely watched by the Federal Reserve, rose 0.6% in the quarter. Still to come is a survey forecast to show consumer sentiment deteriorated this month.

Source