U.S. Treasury debt prices rose on Friday after the previous day's sell-off as investors covered short positions in the wake of a poor auction of U.S. 30-year bonds.
The U.S. 30-year bond sale resulted in a yield of 2.598 percent, about 3 basis points higher than what traders had expected. The lackluster auction pushed yields, which move inversely to prices, to their highest in three weeks on Thursday.
"After the tail yesterday, there were some dip buyers and other interest in the long end, especially going into next week, when we have some crucial data such as retail sales, producer and consumer prices," said Tyler Tucci, Treasury strategist at RBS Securities in Stamford, Connecticut.
"These numbers will really set the tone for the next few weeks as we get a snapshot of where inflation is."
Data on Friday showed inflation pressures remained benign, after import prices fell in March, which could prevent the Federal Reserve from raising interest rates in June.
In mid-afternoon trading, benchmark 10-year Treasurys yields were flat at 1.945 percent after a more- than-week high on Thursday.
U.S. 30-year note yields fell modestly to 2.584 percent, down from 2.6000 percent in the previous session. On Thursday, it hit its highest yield in about three weeks at 2.607 percent.
Richmond Fed President Jeffrey Lacker, a voting member of the Federal Open Market Committee and widely viewed as a hawk on inflation, said on Friday that he saw no problem in hiking rates and then moving to zero if needed. He added that there was a "pretty substantial amount" of support for a June rate hike at the March Fed policy setting meeting.