Mr. Robert Allen

That news helped drive prices higher "in an illiquid market," said Robert Allen, managing director and head of the government trading desk at Banc of America Securities.

"Liquidity is rather light," he said, "so any movements right now, especially on a holiday season Friday, seems to be exaggerated a little."

Still though, Mr Allen expects bond yields to stay well-bid heading into year end as fears about the US economy persist amid year-end buying.

"The Bank of England definitely helped the front end," said Robert Allen, managing director and head of the government trading desk at Banc of America ...

That news helped drive prices higher "in an illiquid market," said Robert Allen, managing director and head of the government trading desk at Banc of America Securities. "Liquidity is rather light," he said, "so any movements right now, especially on a holiday season Friday, seems to be exaggerated a little." Still though, Allen expects bond yields to stay well-bid heading into year end as fears about the economy persist amid year-end buying.