After coming under pressure early in the session, treasuries showed a notable turnaround over the course of the trading session on Friday.
Bond prices climbed well off their worst levels of the day and into positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.6 basis points to 2.850 percent after reaching a high of 2.910 percent.
With the downturn on the day, the ten-year yield extended a recent downward move, hitting its lowest closing level in over three months.
The rebound by treasuries came as traders moved their money into relative safety of bonds amid another sell-off on Wall Street.
Stocks moved sharply lower after the Labor Department's closely watched monthly jobs report showed U.S. employment increased by much less than expected in the month of November.
The Labor Department said non-farm payroll employment rose by 155,000 jobs in November after surging up by a downwardly revised 237,000 jobs in October.
Economists had expected employment to climb by about 200,000 jobs compared to the jump of 250,000 jobs originally reported for the previous month.
Meanwhile, the report said the unemployment rate in November remained unchanged for the second straight month at 3.7 percent, holding at its lowest level since hitting 3.5 percent in December of 1969.
Average hourly employee earnings rose by $0.06 to $27.35 in November, reflecting a 3.1 percent increase compared to the same month a year ago. The annual rate of growth was unchanged from October.
"The slightly more modest 155,000 gain in payroll employment in November may not go down well in markets given the heightened nervousness in recent months," said Paul Ashworth, Chief U.S. Economist at Capital Economics.
"But this is still a solid gain that suggests economic growth is gradually slowing back towards its potential pace," he added. "There is nothing here to suggest the economy is suffering a more sudden downturn."
Lingering skepticism about a U.S.-China trade agreement also weighed on stocks even though President Donald Trump tweeted, "China talks are going very well!"
Following the slew of U.S. economic data released over the past couple days, the economic calendar for next week is relatively light.
Traders are still likely to keep a close eye on reports on retail sales, industrial production, and producer and consumer price inflation.
Bond trading may also be impacted by reaction to the results of the Treasury Department's auctions of three-year and ten-year notes and thirty-year bonds.
The Treasury is due to sell $38 billion worth of three-year notes next Tuesday, $24 billion worth of ten-year notes next Wednesday and $16 billion worth of thirty-year bonds next Thursday.
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