Treasurys level off after December trade data

NEW YORK (MarketWatch) � Treasurys were flat on Friday after rising earlier as the U.S. December trade report showed a narrowing in the nominal trade balance and data from China showed surging exports and imports.

Yields on the benchmark 10-year U.S. Treasury note 10_YEAR � remained unchanged at 1.97% in late-morning trade.

Yields move inversely to prices and one basis point is one one-hundredth of a percentage point.

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Friday�s trade data showed the U.S. imported less than it expected, producing more of the goods that were consumed and purchased in December, said Robert Tipp, chief investment strategist at Prudential Fixed Income.

�That means the GDP is going to go up in the next revision,� he said. �People saw that and there was a feeling that things aren�t as bad as they seem.�

U.S. stocks rose on the trade numbers, while the 10-year yield rose as high as 1.99% from 1.94% earlier. �It�s been a big intraday move,� Prudential�s Tipp said.

U.S. government debt is seen as a safe-haven investment,with investors flocking to the security when the stock market does poorly.

Yields on the U.S. 30-year bond 30_YEAR �were flat at 3.17% and the 5-year note 5_YEAR �yields rose 1 basis point to 0.85%.

U.S. stocks traded up on Friday. The Standard & Poor�s 500 Index SPX �rose 7 points to 1,516 and the Dow Jones Industrial Average DJIA �gained 51 points, or 0.35%, to 13,994. The Nasdaq Composite Index COMP �rose 29 basis points to 1,517.