U.S. sovereign bonds hit session lows on Friday after a private report on U.S. consumer sentiment in early January reduced some worries about domestic growth, sparking selling of safe-haven holdings in U.S. government debt.
The University of Michigan's index that gauges U.S. consumers' attitude on the economy climbed to 98.2 in early January, the highest in 11 years.
Yields on benchmark 10-year Treasury notes—used to calculate mortgage rates and other consumer loans—rose to 1.80 percent, down 26/32 in price, giving up a rally that had seen yields fall for five-straight sessions.
This followed the announcement by the Swiss National Bank (SNB) that it would abandon its three-year-old cap on the Swiss franc's value against the euro.
Swiss bonds also rose on Friday, pushing the 10-year government bond yield into negative for the first time, according to Reuters.
The "safe-haven" rally meant German bunds also continued to gain on Friday.
"What makes this move shocking is that just last month the SNB committed to preventing their currency appreciating beyond 1.20 to the euro and vowed they would enforce the policy with 'the utmost determination,'" said Deutsche Bank's Jim Reid in a research note sent on Friday.
"The risk for the global financial system is that if the SNB can make such a dramatic U-turn could other central banks follow at some point."
Wall Street stock indexes fell for a fifth straight session on Thursday after the news, and looked set for a lower open on Friday.
Read MoreTrack US stock markets with CNBC
Reuters contributed to this report.