The benchmark 10-year government note's price rose 1 point Friday, extending earlier gains, as the stock market came off the session highs it had reached on stronger oil prices and hopes of more aggressive rate cuts from the Federal Reserve.
The price on 10-year notes were up 1 point at 100-7/32. Their yield, which moves inversely with their price, was 3.48 percent, down from 3.59 percent late Thursday.
Treasury debt prices rallied after a large drop in non-farm payrolls confirmed fears of many investors that the economy continues to struggle and may be in the throes of a recession.
The drop in March payrolls, as well as revisions showing bigger drops in January and February, convinced many the Federal Reserve would continue to aggressively cut interest rates in an effort to stimulate the economy.
"The recessionary winds are hitting the economy with even greater force with the loss of jobs for a third month," said Chris Rupkey, senior financial economist at Bank of Tokyo-Mitsubishi UFJ in New York.
Two-year notes were trading 4/32 higher in price for a yield of 1.86 percent from 1.92 percent.
Government data showed employers cut payrolls for the third consecutive month in March, slashing 80,000 jobs for the biggest monthly decline in five years. Economists on average had been looking for payrolls to fall by 60,000 last month.