Following the rebound seen in the previous session, treasuries continued to regain ground during trading on Friday.
Bond prices initially moved higher and saw some further upside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.6 basis points to 2.871 percent.
With the notably decrease on the day, the ten-year yield pulled back further off the four-year closing high set on Wednesday.
The continued rebound by treasuries came as the Federal Reserve issued its monetary policy report to Congress, with the central bank hinting that it still plans three interest rates hikes in 2018.
"The federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run," the Fed said, suggesting a gradual pace of rate hikes.
Economic data may be in focus next week, with traders likely to keep an eye on reports on new home sales, durable goods orders, consumer confidence, personal income and spending, and manufacturing activity.
Congressional testimony by new Federal Reserve Chairman Jerome Powell is also likely to attract next Wednesday amid lingering concerns about the outlook for interest rates.