Treasury debt prices rose on Friday after tame inflation data eased some recent concerns over the potential for Federal Reserve rate hikes.

Softer-than-expected figures on U.S. industrial output, capacity utilization and consumer sentiment also contributed to the firmer tone in bond prices, which pulled benchmark yields further back from five-year peaks hit on Wednesday.

After a topsy-turvy ride in recent days, 10-year yields were still on track to end the week higher, though bond sentiment was bolstered by the data showing annual underlying, or core, inflation fell to its lowest in more than a year.

The annual core inflation rate of 2.2 percent in May marked a retreat toward the Fed's comfort zone of 1 to 2 percent and came in below market forecasts of 2.3 percent.

The core inflation was definitely important. What it revealed is that inflation at the core level is still down trending, said David Coard, head of fixed-income sales and trading at the Williams Capital Group in New York.

That's definitely a positive for bonds and it should allay any fear, at least for the time being, that the Fed could thinking about tightening.

Prices on benchmark 10-year Treasury notes were up 6/32 in price, pushing yields down to 5.20 percent. The 30-year long bond was up 12/32 in price, lowering yields to 5.28 percent. Two-year notes, the most sensitive to changing monetary policy views, rose 1/32 to yield 5.08 percent.