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.