Bond prices fell sharply in quiet trading Friday as crude oil prices closed above $35 a barrel and prospects dimmed for a federal budget agreement anytime soon.

The Treasury's bellwether 30-year bond fell 3/4 point, or $7.50 per $1,000 face amount. Its yield, which rises when the price falls, climbed to 9.11 percent from 9.03 percent late Thursday.Bond prices skidded as oil futures prices soared on the New York Mercantile Exchange.

Inflation, spurred by rising oil prices, carries a double threat for bonds: It erodes their value, and it also lessens the likelihood that the Federal Reserve will allow interest rates to fall.

Bond traders have been hoping the Fed would nudge rates lower because that would move bond prices higher. But the surge in oil prices has dampened those hopes.