U.S. Treasuries showed mixed performance on Friday, with the yield curve steepening further, continuing the trend observed since the Federal Reserve's interest rate decision on Wednesday. Early trading saw multiple large futures transactions reinforcing this movement.

Shortly after 3 p.m. in New York, the yield on the 2-year Treasury note fell by approximately 1.2 basis points intraday, while yields on the 5-year to 30-year Treasuries rose by 5 to 6 basis points.

The spread between the 2-year and 10-year Treasury yields widened by about 5 basis points to 67 basis points, nearing the year-to-date high reached in April. Meanwhile, the 5-year to 30-year yield spread expanded by roughly 4.5 basis points to 111 basis points, marking the widest level since September 11.

The 5-year to 30-year yield spread peaked during early trading, following a series of block trades in 2-year and 5-year Treasury futures contracts.

Additionally, large buy orders for January federal funds futures emerged after Philadelphia Fed President Paulson remarked during early U.S. trading that risks of further labor market deterioration outweighed inflation concerns.

By the close, markets continued to price in roughly 5 basis points of rate cuts for the Fed's January policy meeting and about 13 basis points in cumulative cuts for both January and March, showing little change intraday.

As of 3:55 p.m. New York time: - The 2-year Treasury yield stood at 3.5264%, - The 5-year Treasury yield was at 3.7452%, - The 10-year Treasury yield reached 4.188%, - The 30-year Treasury yield climbed to 4.8537%, - The 2-year to 10-year yield spread was at 65.954 basis points, - The 5-year to 30-year yield spread stood at 110.676 basis points.