WASHINGTON - An absence of important economic news Friday and the subsiding hysteria over the Orange County, Calif., fiasco left most Treasury security prices essentially unchanged from the previous day.

The only exception was the long bond, which ended Friday up 10/32 at a price of 96 2/32 with a 7,84% yield. The 10-year note was up a tick at 100 17/32, yielding 7.79%.

Meanwhile, shorter maturities were narrowly mixes, with three-month and six-month bills yielding 5.81% and 6.46%, respectively.

The market was unfazed early Friday when the University of Michigan reported that is consumer sentiment index increased to 97.7 in December from 91.6 in November - resulting from a rise in both the expectations and current conditions components.

The yield curve has flattened to the point where the short end could be poised for a rally and the long end could be flirting with a fall, analysts said.

"The flatness in the curve and the decline in long rates are a little premature," said Brian Wesbury, chief economist at Griffin, Kubik, Stephens & Thompson Inc. in Chicago.

Investors are working their way out the yield curve in an effort to lock in yields at the peak of the expansion in rates, analysts speculated, But Wesbury and other analysts said bond yields are likely to see higher levels before a prolonged downtrend.Treasury Market Yields Previous Previous Friday Week Month3-Month Bill 5.80 5.71 5.366-Month Bill 6.43 6.27 5.881-Year Bill 7.01 6.91 6.362-Year Note 7.49 7.43 7.043-Year Note 7.65 7.62 7.395-Year Note 7.74 7.80 7.697-Year Note 7.75 7.84 7.8210-Year Note 7.78 7.91 7.9730-Year Bond 7.85 8.01 8.14

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