After moving lower over the course of the previous session, treasuries rebounded strongly during the trading day on Friday.
Bond prices moved notably higher in morning trading and remained firmly positive throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 4.5 basis points to 3189 percent.
The pullback by the ten-year yield came after it climbed to its highest closing level in well over seven years on Thursday.
Treasuries benefited from their appeal as a safe haven amid a sell-off on Wall Street and concerns about the global economic outlook.
Meanwhile, traders seemed to shrug off worries about the outlook for interest rates on the heels of the Federal Reserve's monetary policy announcement on Thursday.
The Fed left interest rates unchanged as widely expected but indicated it remains on track to gradually raise rates despite signs of a slowdown in the pace of growth in business investment.
On the U.S. economic front, the Labor Department released a report showing a much bigger than expected increase in producer prices in the month of October.
The Labor Department said its producer price index for final demand climbed by 0.6 percent in October after rising by 0.2 percent in September. Economists had been expecting another 0.2 percent uptick.
Excluding food and energy prices, core producer prices still rose by 0.5 percent in October after edging up by 0.2 percent in September. Core prices had been expected to rise by another 0.2 percent.
Compared to the same month a year ago, producer prices in October were up by 2.9 percent, reflecting an acceleration from the 2.6 percent increase in September.
The annual rate of growth in core consumer prices also accelerated modestly to 2.6 percent in October from 2.5 percent in September.
"Overall, the producer prices data show that inflationary pressures remain fairly strong, which will keep the Fed hiking rates once a quarter in the near term," said Andrew Hunter, U.S. Economist at Capital Economics.
A separate report from the University of Michigan showed a slight deterioration in consumer sentiment in the month of November.
The report said the consumer sentiment index edged down to 98.3 in November from the final October reading of 98.6. Economists had expected the index to dip to 98.0.
The economic calendar for next week starts off relatively quiet, although reports on consumer prices, retail sales, and industrial production are likely to attract attention.
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