The benchmark 10-year yield was down 2.3 basis points at 1.5331% in morning trading, at low end of the 1.528% to 1.646% range it has held since April 15.
Treasury auctions of 2-year, 5-year and 7-year notes on Monday and Tuesday totaling $183 billion will also show the market's appetite for US debt.
"We've confirmed that demand for Treasuries is healthy, which means there is no upward pressure on yields," said Junichi Ishikawa, senior foreign exchange strategist at IG Securities in Tokyo.
The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan against a basket of currencies on a daily basis, stood at 96.69, firmer than the previous day's 96.56.
Ten-year Treasury yields fell more than 10 basis points on Thursday, the biggest one-day move down since early-November, Yields touched a low of 1.5280% -- well off 14-month highs hit recently above 1.77%.
On Friday, yields rose again to 1.56%, up 3.5 basis points on the day but still down eight bps from where the market opened on Thursday.
The 10-year yield was last down 2.1 basis points at 1.6552%, holding below a 14-month high of 1.776% reached on March 30.
"We've had yields run up a ton on expectations that inflation is going to be going to the moon ... but (the data) doesn't show any signs of getting completely out of control, at least not yet," he said.