U.S. government prices were sharply lower after the Treasury Department auctioned $29 billion in seven-year notes at a high yield of 1.885 percent on Thursday.
The bid-to-cover ratio, an indicator of demand, was 2.55.
Indirect bidders, which include major central banks, were awarded 62.3 percent, lower than at September's seven-year sale. Direct bidders, which include domestic money managers, brought 14 percent, higher than at September's sale.
The yield on the benchmark 10-year Treasury note was higher at 2.1745, after closing at 2.092 percent.
The yield on the 30-year Treasury bond was higher, at 2.9635 percent, after closing at 2.865 percent.
Two-year yields also built on Wednesday's gains, trading at 0.7236 percent.