The Treasury said electronic payments sent by direct deposit in the latest round of disbursements will have an official pay date of Wednesday, March 24, with some recipients seeing them in their bank accounts earlier as pending deposits.
"The selloff may have run its course," said Jabaz Mathai, head of US rates strategy at Citi, pointing to inflation breakevens backing down.
"I would not say the bear market in Treasuries is over at this point, but there is the prospect of a near-term pullback," said Mathai. "You should see some stability in the 10-year around these levels."
The benchmark 10-year US Treasury note's yield was down 5.2 basis points at 1.4633%. On Thursday it touched 1.614%, the highest in a year, rocking world markets.
Part of Friday's decline could also reflect dealers convincing clients to buy bonds after poor demand for a 7-year note auction on Thursday.
The 10-year yield was up 6.9 basis points at 1.4578% and reached as high as 1.468%, the highest in a year.
"It's starting to become a momentum trade and the sell-off is becoming a global phenomenon," said Subadra Rajappa, head of US rates strategy at Societe Generale.
Yields dropped on Wednesday after data showed that the core consumer price index, which excludes the volatile food and energy components.
Lederer added that he does expect yields to rise later this year as COVID-19 vaccines are rolled out and the economy returns to more normal conditions.
The benchmark 10-year yield was up 1.4 basis points at 1.1532% in morning trading after it reached as high as 1.188%, its highest since March 20, 2020.
US employment growth rebounded less than expected in January and job losses the prior month were deeper than initially thought.
A review of what went wrong and measures to boost the market's resilience could be among the first regulatory challenges for incoming Treasury Secretary Janet Yellen.
The deepest and most liquid market in the world, Treasury securities sit at the heart of the global financial system