Treasuries have rallied strongly since the Federal Reserve last week dramatically abandoned projections for any interest rate hikes this year.

"I would expect a bit of a consolidation phase after the very sharp move downward in yield we've experienced in the last week-and-a-half," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia.

"We're taking our cues from equity markets into quarter-end. So much is wrapped around risk sentiment," he added.

Ten-year notes were last down 2/32 in price to yield 2.379 percent, after dropping to 2.340 percent in overnight trading, the lowest since December 2017.

The yield curve between three-month bills and 10-year notes remained inverted by six basis points. The inversion, if it persists, could indicate a recession is likely in one to two years.

Data on Thursday showed that the US economy slowed more than initially thought in the fourth quarter, keeping growth in 2018 below the Trump administration's three percent annual target, and corporate profits failed to rise for the first time in more than two years.

On Wall Street, main stock indexes were set for a subdued opening as investors awaited details on progress in US-China trade negotiations and amid lingering fears of slowing economic growth.

Interest rate futures traders are now pricing in a 62 percent chance of a rate cut by December, according to the CME Group's FedWatch Tool.

The Treasury will sell $32 billion in seven-year notes on Thursday, the final sale of $113 billion in new coupon-bearing supply this week.

The government sold $41 billion to strong demand on Tuesday while a $40 billion sale of five-year notes on Wednesday was also solid.