Treasury prices rose Friday, nudging yields lower, as investors moved into safe-haven assets, prompted by dwindling confidence that Washington will be able to avoid billions of automatic tax hikes and spending cuts due to take effect on Jan. 1.

Yields on benchmark 10-year notes fell 2 basis points to 1.72%, the lowest since mid-December. Bond prices move inversely to their yields; a basis point is one one-hundredth of a percentage point.