Treasuries rose on Friday after a report on plummeting U.S. consumer sentiment and drops in New York manufacturing increased concerns about a U.S. recession.

Traders are increasingly looking forward to more Federal Reserve interest rate cuts as the economy slows further. Yesterday, Federal Reserve Chairman Ben Bernanke saw said the FEd would act in a timely manner to avoid downside risks.

Consumer confidence fell to its lowest level in 16 years, according to the Reuters/Univerversity of Michigan index of consumer sentiment. It fell to 69.6 in February versus 78.4 in January.

Meanwhile, New York manufacturing was lower. The Federal Reserve Bank of New York's general economic index dropped to -11.7 in February, from 9.0 in January. Readings below zero are considered a sign of contraction.

Ten year treasury notes rose 13/32 in price to yield 3.771 percent at 4:34 p.m. in New York. The two year note fell 1/32 in price to yield 1.911 percent.