U.S. Treasury debt yields edged higher on Friday after steep losses the previous session, but their uptrend has started to waver as a recent run of weaker-than-expected economic data has raised doubts about the stability of the U.S. recovery.
While some analysts have attributed the weakness in the U.S. economic numbers to the recent cold spell, a growing number have said that it's probably more than weather-related.
The latest economic report to disappoint was U.S. manufacturing output, which unexpectedly fell 0.8 percent in January, recording its biggest drop in more than 4-1/2 years. Cold weather disrupted production in some parts of the country, the Federal Reserve said.
A U.S. consumer sentiment report, meanwhile, was fairly tepid with the index unchanged, as Americans' optimism about their future prospects was tempered by concern over current finances.