The yield on benchmark 10-year Treasury notes fell 4.3 basis points to 1.640% and the breakeven rate on five-year US Treasury Inflation-Protected Securities (TIPS) slid to 2.608%.
"We've probably already reached the peak level of economic activity, and that probably happened in March and April," Ricchiuto said.
"The growth story is leading to inflation, while the Federal Reserve is jawboning, trying to keep expectations down, which I think is the right thing to do."
In mid-morning trading, the US 10-year Treasury yield fell to 1.559% on Thursday, from 1.584% late on Wednesday.
The safe-haven greenback got some respite from a pullback in world stocks from record highs as flare ups in coronavirus infections from India to Canada soured the outlook for a quick global recovery.
The dollar's performance has been tied to US Treasury yields for most of 2021, after concern about rising inflation in the United States and a stimulus-fuelled economic rebound triggered a jump in Treasury yields.
The dollar index was last down 0.11% against a basket of currencies at 92.108. It is holding above a three-week low of 91.995 reached on Thursday.
Scotiabank says the broader market will play a more decisive role for the won in April, where typically South Korean companies pay dividends which tends to add upward pressure on the dollar/won.
The prospect of losses for US banks, following hedge fund Archegos Capital's default on margin calls, also had market participants concerned.
US money market funds received a net $50.35 billion in the week to March 31, after an over $60 billion inflow in the previous week, data from Refinitiv Lipper showed.
The SARB has most likely reached the end of its lowering cycle and will start moving towards a hiking cycle, albeit only from next year onwards.
The slow vaccination roll-out programme, which raises the concern of a third wave of Covid-19 infections, and more intensive electricity outages remain the biggest downside risk to the economy over the short term.
The key one-week repo rate is the highest of any big economy and it is back to levels last touched in mid-2019. It had stood at 17% since December after aggressive monetary tightening last year.
The central bank has now tightened policy by 875 basis points since Erdogan appointed Agbal in November, when the lira touched a record low. It had rallied 20% after the appointment.
The blue chip NSE Nifty 50 index closed 1.27% lower at 14,721.30, while the benchmark S&P BSE Sensex fell 1.12% to end at 49,801.62. Both indexes have now posted four straight sessions of losses.
A rise in US bond yields has also limited gains for Nifty and Sensex this month to about 3%, versus a 6.6% jump in February.
Investors purchased a net $15.3 billion worth of US equity funds in the week to March 10, compared with just $944 million a week before, data from Refinitiv Lipper showed.
Among equity funds, energy sector funds enjoyed the biggest inflow at $1.1 billion, boosted by higher energy prices. It was the fifth consecutive weekly inflow.