"We are seeing some real money account selling because of the falls in government bonds and are a touch wider for choice," said a trader in London.
"Some of the crossover names are coming under a bit of pressure." Crossover credits are those with credit ratings on the cusp between investment and non-investment grade.
The DJ iTraxx index of crossover credit default swaps traded slightly off its all time tight closing level of 178.85, reached on Thursday, after a jump in a key gauge of US inflation rose in January at the fastest rate in six years.
Faster inflation hurts bonds because it erodes the value of their fixed returns and can help push up interest rates, boosting companies' borrowing costs.
Despite the reports of declines, the FTSE Euro Corporate Bond Index showed investment-grade corporate bonds in euros yielding an average 39.8 basis points more than similarly dated government bonds at 1534 GMT, 0.3 basis points less on the day.
Widely held bonds of US auto makers weakened on Friday afternoon, although traders said most of the selling was from street traders.
"The inflation numbers were a concern, the government bond market really sold off and worries of rate rises in the US is not positive for auto bonds," said a trader.
General Motors' 8.375 percent euro bond due July 2033 was bid five basis points wider by 1525 GMT at 409 basis points over government bonds.
The cost of insuring against a default by Italy's Fiat fell briefly after industrial sources said Maserati Chief Executive Martin Leach is due to leave the group and will not take up any other post.
Five year credit default swaps on Fiat were unchanged at 350 basis points by mid-afternoon, having fallen as much as 7 basis points earlier in the day.
"The management changes went down well," said a trader.
In an otherwise moribund primary market, Denmark plans to issue a five-year euro-denominated benchmark bond, lead managers Barclays Capital, Danske Bank and J.P. Morgan said on Friday.
France confirmed on Friday it will issue a fixed-rate, euro-denominated 50-year bond, taking advantage of low borrowing costs and tapping into growing demand from pension funds for ultra-long dated debt.
In the high-yield market German packaging company Gerresheimer Glas will begin marketing a 150 million euro 10-year bond, a banking source familiar with the deal said on Thursday.
US private equity firm the Blackstone Group acquired Gerresheimer from J.P. Morgan Partners and Investcorp for an undisclosed sum in November. Proceeds from the bond sale will provide funding for the leveraged buyout.
British home improvement chain Focus Group will next week begin marketing for a 100 million sterling 10-year mezzanine note as part of a refinancing following the sale of its Wickes arm, a banking source familiar with the deal said earlier this week.
As part of the refinancing Focus will also buy back the outstanding 190 million pound notes due 2011 and the 140 million euro notes, also due 2011, issued by Focus Wickes, the company said in a statement.
In the asset-backed world, two pub deals were in the pipeline for coming weeks. The first is a refinancing for Unique Pub Finance, part of the Enterprise Inns group, Britain's biggest pub group, while the other is a 600 million pound deal for Greene King Plc, a regional brewer. Both are refinancing the acquisition of pub portfolios.