NEW YORK (AP) _ Bond prices rose Friday on further indications that the economy is slowing and inflation is under control.

The price of the benchmark 10-year Treasury note rose 5/16 point, or $3.13 per $1,000 in face value. Its yield, which moves in the opposite direction, fell to 5.68 percent from 5.72 percent late Thursday.

The 30-year Treasury bond rose 1/8 point to yield 5.66 percent, unchanged from a day earlier, according to Bridge Telerate news service.

The bond market closed at 2 p.m. Friday ahead of the Labor Day weekend. The bond market is closed Monday for the holiday and will reopen on Tuesday.

Treasurys added to their recent gains amid reports showing a softer-than-expected labor market and declining manufacturing activity.

The Labor Department reported that the nation's employers cut more jobs in August than at any time in the past nine years and that wages increased at a slower rate.

In another report, manufacturing activity declined in August after 18 months of growth, reflecting the influence of higher interest rates and a cooling economy, the National Association of Purchasing Managers said.

Both reports reduce inflation fears and bolster expectations that the Federal Reserve will remain on the sidelines when it comes to interest rates.

Yields on three-month Treasury bills were 6.25 percent with a discount rate of 6.08 percent, down 0.03 percentage points from Thursday. Six-month yields were 6.30 percent and a discount rate fell 0.04 percentage point to 6.04 percent. One-year yields fell to 6.14 percent with a discount of 5.80 percent, down 0.06 percentage points from Thursday.

Yields are the interest bonds pay by maturity, while the discount is the interest at which they are sold.

The federal funds rate, the interest on overnight loans between banks, was 6.56 percent, down from 6.63 percent Thursday.

In the tax-exempt market, the Bond Buyer index of 40 actively traded municipal bonds rose 5/32 to 99 15/32. The average yield to maturity fell remained unchanged at 5.72 percent.