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After ending the previous session roughly flat, treasuries saw modest weakness during the trading day on Friday.
Bond prices climbed well off their worst levels in afternoon trading but still closed in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by nearly a basis point to 2.355 percent.
The weakness among treasuries came as traders expressed optimism about the Republican tax reform plan despite some concerns among GOP Senators.
Senator Marco Rubio, R-Fla., indicated he plans to support a revised bill after changes were made to the child tax credit.
A House-Senate conference committee seeking to negotiate differences in the bills passed by the two chambers is expected to release their combined legislation this afternoon.
On the U.S. economic front, the Federal Reserve Bank of New York released a report showing growth in New York manufacturing activity slowed by more than anticipated in the month of December.
The New York Fed said its general business conditions index dropped to 18.0 in December from 19.4 in November, although a positive reading still indicates growth in regional manufacturing activity. The index had been expected to dip to 18.6.
Meanwhile, a separate report released by the Federal Reserve showed a smaller than expected increase in industrial production in the month of November.
The Fed said industrial production edged up by 0.2 percent in November after jumping by an upwardly revised 1.2 percent in October.
Economists had expected production to climb by 0.3 percent compared to the 0.9 percent increase originally reported for the previous month.
Economic data may attract attention next week, with traders likely to keep an eye on reports on new and existing home sales, housing starts, durable goods orders and personal income and spending.
Activity in Washington may also impact trading, as Republican lawmakers are hoping to vote on their tax reform bill next week.
