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.
"Falling incidence of the coronavirus will lower initial claims," said Stan Shipley, fixed income strategist, at Evecore ISI in New York. He added that overall the data showed the "labor market is continuing to heal and should be neutral for Treasury yields."
In midmorning trading, the US 10-year Treasury yield was down at 1.64% from 1.654% on Wednesday.
Yields on the front end to the so-called belly of the curve were down, while those on the very long end were firmer. US 10-year yields, however, dropped to a two-week low.
In mid-morning trading, the US 10-year Treasury yield was little changed at 1.656%, from 1.657% on Tuesday.
That pushed US Treasury yields higher across the curve on Friday, and as much as 6 basis points on five-year Treasuries.
"Thanks to yesterday's decline in US Treasury yields, any upward pressure on Bund yields stemming from spillover effects is likely to be limited," UniCredit analysts told clients.
Nikkei share average lost 0.81% to 29,844.81 by 0208 GMT, after hitting the 30,000 mark for the first time in more than two weeks on Monday. The broader Topix fell 0.74% to 1,968.80
"The market fundamental is strong. But ultimately the stimulus packages in the US and the direction of the long term interest rates could determine the move of the Japanese market."
The US yield curve, which has become a barometer of risk sentiment in the bond market, steepened after flattening in the previous session. The spread between US 2-year and 10-year yields rose to 155 basis points.
Trading was quiet to start the week, with most of Europe still on holiday for Easter Monday. China, Hong Kong and Australia were closed as well.
The greenback has generally risen at the same time as stocks gain. Investors are now watching to see if that relationship continues as it may indicate a shift in how the currency responds to improving risk appetite.
"The trickiest thing for markets right now is to figure out what the dollar's sensitivity is to good US economic news," said Erik Nelson, a macro strategist at Wells Fargo in New York.
A rally in European shares to near record highs and signs of a pick-up in inflation in big euro zone economies also weighed on euro area bonds, pushing 10-year yields up 4 to 5 basis points across the board.
In turn, Germany's 10-year bond yield rose over 5 bps to -0.26%, its highest level in almost two weeks. This left the gap with its US peers at just over 200 bps and near the widest levels in over a year.