Treasury prices advanced Friday, pushing 10yr yields down from the highest level in a month, amid further investor reaction to the European Union's lack of direct aid to Greece, and China's move to increase banks' reserve requirement to cool economic growth, which spurred some interest in the relative safe-haven status of U.S. debt.

Yields on 10yr notes fell 3bps to 3.69%. At the shorter end, yields on 2yr notes declined 4bps to 0.83%. 10yr yields have risen from 3.55% last Friday, while 2yr yields are up from 0.75%.

Bond markets were closed on Monday for Presidents Day.

Still, Treasurys are headed for a weekly loss, as $82B in government bond sales weighed on the market. Also, remarks earlier in the week from Fed Chairman Ben Bernanke hinted at steps the central bank may take towards unwinding some of its ultra-easy monetary policies.

The market was buoyed Friday by an unexpectedly weak reading on consumer confidence. An index released by the University of Michigan and Reuters fell to a reading of 73.7 in February from 74.4 in January.

Separately the Commerce Dept. said inventories at U.S. businesses fell 0.2% in Dec., worse than analysts had expected.

Treasurys also shrugged off an earlier report that showed a 0.4% increase in U.S. retail sales last month, outpacing forecasts that called for a 0.3% increase, as well as an upwardly revised 0.1% decline in Dec. sales. Excluding autos, January sales rose 0.6%.

Treasurys fell on Thursday, pushing benchmark 10yr note yields to the highest in a month, as the government finished up its auctions for the week and as global markets were initially supported by the E.U.'s pledge to help Greece.