U.S. Treasury debt prices continued their decline after the release of numerous U.S. data points on Friday. The drop marked the market's worst week in two months, as traders who have been rethinking the global interest rate outlook further bailed out of bullish bond bets.
Traders brushed off mild misses on U.S. data on manufacturing and construction spending. The ISM manufacturing index hit 51.5 for the month of April, while construction spending fell 0.6 percent for March.
Benchmark 10-year Treasury notes traded as high as 2.1209 percent Friday, surpassing an earlier seven-week high of 2.1173 percent. It was most recently around 2.11 percent.
Investors have pared their holdings of U.S. government debt since mid-April, as heavy debt supply and diminished pessimism about Europe reduced the safe-haven allure of Treasurys, German Bunds and British gilts.
"The fundamentals in Europe are turning and there may be an acknowledgement of that," said Jeffrey Rosenberg, chief investment strategist for fixed income at New York-based BlackRock, the world's biggest asset manager. The