U.S. government debt prices jumped on Friday as global credit contagion fears surrounding Turkey pushed traders into relatively safer assets like Treasurys.
The Turkish lira collapsed to an all-time low against the U.S. dollar Friday even as Turkey's leader, President Recep Erdogan downplayed the concerns, telling Turks "we have our God."
The yield on the benchmark 10-year Treasury note was sharply lower at around 2.894 percent at 5:45 a.m. ET, while the yield on the 30-year Treasury bond was deep in the red at 3.048 percent. Bond yields move inversely to prices.
Markets around the world are coming under sharp pressure on Friday, as investors monitor the latest U.S.-China trade developments and news surrounding sanctions on Russia.
On Wednesday, the U.S. administration announced that it planned to inflict sanctions on Russia over its alleged chemical poisoning of an ex-spy in England earlier this year.
Russia's Prime Minister Dmitry Medvedev warned the States on Friday that enacting these sanctions could be treated as a declaration of economic war, according to Reuters . Consequently, investors have been keeping a close eye on the Russian ruble.
Likewise, investors continue to monitor trade tensions between Washington and Beijing. This week both governments announced the possibility of imposing tit-for-tat tariffs on an additional $16 billion worth of goods.
In economic data, consumer price index (CPI) figures are due out at 8:30 a.m. ET, followed by the monthly treasury statement at 2 p.m. ET.
No major speeches by members of the U.S. Federal Reserve are scheduled, neither are there any U.S. Treasury auctions.