Longer-dated U.S. bonds climbed from earlier lows on Friday afternoon, following a survey that showed improving consumer sentiment.
Rising prices brought down yields on benchmark 10-year Treasury notes—used to calculate mortgage rates and other consumer loans—to 2.32 percent in afternoon trading, on a rise of 5/32 in price. Prices and yields are inversely related.
November's consumer sentiment rose to , bolstered by falling unemployment and cheap gasoline prices. Consumers' one-year inflation expectation fell to 2.6 percent from 2.9 percent.
In the morning, Treasury prices dropped after a in October retail sales. Last month, U.S. retail sales rose 0.5 percent—the biggest jump since August, according to the Commerce Department.
"It's a very key number, it shows the health of consumers and plays a part in GDP, and the Fed is definitely looking at it," said Justin Lederer, Treasury strategist at Cantor Fitzgerald in New York. Short-dated Treasury notes are viewed as most vulnerable to the Fed's first hike in interest rates from rock-bottom levels.
The U.S. 30-year bond price is up 16/32 to yield 3.049 percent.
Meanwhile, world leaders have gathered in Brisbane, Australia for this weekend's G-20 Leaders' Summit. Policymakers will discuss global growth challenges, with the G-20's goal of boosting collective GDP by 2 percentage points over five years looking increasingly unlikely.
—Reuters contributed to this report.