U.S. Treasury securities continued their decline, partially reversing the previous day's bullish steepening, after the University of Michigan's preliminary February consumer sentiment index came in stronger than expected. Despite strong dip-buying in U.S. equities, Treasury yields ended the session only slightly below their daily peaks.

Short-term Treasury yields climbed approximately 4 basis points by mid-afternoon in New York, while the yield spreads between 2-year and 10-year notes, as well as between 5-year and 30-year bonds, flattened by about 2 basis points during the session.

The curve flattening was influenced by two large block trades in Treasury futures that were risk-weighted and involved 2-year and ultra 10-year contracts.

Losses in Treasuries gradually widened during the early U.S. trading session as equities rebounded and swap spreads stabilized, partially erasing the significant narrowing seen on Thursday. The selloff intensified after the University of Michigan survey results exceeded expectations, with losses persisting in thin afternoon trading.

As of 3 p.m., trading volume in U.S. Treasury futures was approximately 90% of the 20-day average. The 2-year Treasury futures contract was the most active, with volume exceeding the average by 25%.

By 4:14 p.m. Eastern Time, the yield on the 2-year U.S. Treasury note had risen 4.51 basis points to 3.4955%.

The yield on the 5-year U.S. Treasury note increased by 3.63 basis points to 3.755%.

The 10-year U.S. Treasury yield climbed 2.39 basis points to 4.204%.

The 30-year U.S. Treasury yield advanced 1.23 basis points to 4.853%.

The yield spread between 2-year and 10-year U.S. Treasuries narrowed by 1.91 basis points to 70.645 basis points.

The spread between 5-year and 30-year U.S. Treasury yields decreased by 2.23 basis points to 109.802 basis points.