U.S. government debt prices were lower on Friday, as investors digested comments from a key Federal Reserve official.
New York Fed President William Dudley — a voting member of the central bank's policymaking committee — said in prepared remarks he expects the U.S. economy to grow about 2 percent in 2016.
"Although the downside risks have diminished since earlier in the year, I still judge the balance of risks to my inflation and growth outlooks to be tilted slightly to the downside," Dudley said.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, sat higher at 1.7203 percent, while the yield on the 30-year Treasury bond was also higher, at 2.5530 percent.
On the data front, wholesale inventories fell more 0.5 percent, more than expected.
Fed Chair Janet Yellen touted the strength of the U.S. economy on Thursday, rebuffing political rhetoric suggesting a bubble is ready to burst.
"I certainly wouldn't describe this as a bubble economy," Yellen said, noting a "healing" labor market and a 5 percent headline unemployment number.
Yellen's comments came during a panel with former Fed Chairs Ben Bernanke, Paul Volcker and Alan Greenspan at the International House in New York.