U.S. Treasury prices rose on Friday on month-end buying and lingering concerns about emerging market economies, putting safe-haven bonds on track to notch their strongest gains in 20 months in January.
Investors continued to flee emerging markets as the latest round of central bank actions failed to offset concern about rising economic and political risks in many developing economies.
"The risk-off theme continues. You have money coming out of equities and into Treasuries. It's also definitely helping with month-end buying," said Justin Lederer, Treasury strategist at Cantor Fitzgerald in New York.
The yield on the benchmark 10-year Treasury note has fallen 35 basis points this month, marking the biggest decline since May of 2012. Bond yields move inversely to their prices.
In contrast, the Standard & Poor's 500 is down nearly 4 percent for the month, its biggest drop since May 2012.
The Federal Reserve's expected decision on Wednesday to cut its asset purchases by $10 billion to $65 billion a month removed some support from emerging market assets, resulting in steady buying of safe-haven bonds and selling of riskier assets.