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Treasurys gained ground Friday, dragging yields lower, taking cues from lackluster U.S. economic data and a further fall in German bund yields.

The yield on the 10-year Treasury note (10_YEAR) dropped nearly 5 basis points to 2.126%, according to online trading platform Tradeweb. The two-year yield (2_YEAR) fell 0.3 basis point to 0.673%, while the 30-year T-bond yield (30_YEAR) dropped 4.8 basis points to 2.701%. Yields fall as bond prices rise.

Treasury prices saw their biggest annual rally in three years in 2014, defying consensus forecasts for yields to rise as the Federal Reserve moved to end its bond purchases. The rally resumed as investors trickled back from Thursday’s New Year’s Day holiday, with yields extending their drop after the Institute for Supply Management said its manufacturing index fell to 55.5% in December from 58.7% a month earlier.

Economists surveyed by MarketWatch had forecast a reading of 57%. A reading of more than 50% indicates growth in activity.

“This is disappointing…and follows the trend seen elsewhere around the world today. Nonetheless, it still suggests that the US economy is growing strongly, roughly at trend of around 3%, which is well above the rate seen in other mature developed economies,” wrote James Knightley, economist at ING.

European Central Bank President Mario Draghi, in an interview with a German newspaper, dropped further hints the institution will move sooner rather than later to implement full-blown government bond buying in an effort to hold off inflation.

The yield on benchmark 10-year German bund fell to 0.5%.