Treasurys fall ahead of weekend

NEW YORK -- Treasurys fell Friday ahead of the three-day weekend, as investors anticipated more news from Washington next week on how officials intend to stoke the economy.

On Friday, the White House said President Obama will outline steps to stem home foreclosures Wednesday.

The market is also coming off a record week for government debt auctions. This week alone, the Treasury Department successfully sold $67 billion in long-term debt.

"The auctions went incredibly well. There was a lot of investor demand," said Tom di Galoma, head of Treasurys trading at Jefferies & Co. "The question is, will it be able to continue?"

In afternoon trading, the 30-year bond fell 2 28/32 to 96 23/32, and its yield rose to 3.68 percent from 3.52 percent late Thursday.

The benchmark 10-year Treasury note fell 29/32 to 98 24/32, and its yield rose to 2.90 percent from 2.79 percent.

The two-year note fell 4/32 to 99 25/32, and its yield rose to 0.98 percent from 0.92 percent.

The three-month Treasury bill's yield was flat at 0.28 percent. The discount rate was 0.29 percent.

In a positive sign for the slow credit markets, the cost of lending between banks has held steady this week. The British Bankers' Association said London Interbank Offered Rate, or Libor, on three-month loans in dollars edged up 0.01 percentage point to 1.24 percent -- the same rate as last Friday.