Sidelining his critics, ECB President Mario Draghi stuck to his pledge last month to keep money pouring into the euro zone economy for as long as needed, despite improved growth and inflation prospects. Currently, inflation is running at 1.4 percent in the 19 countries that use the euro currency.
The asset purchase programme, known as quantitative easing, has racked up €2.29 trillion in bonds on the ECB's balance sheet since starting in 2015, with the plan now only set to continue until the end of September.
The US dollar index traded marginally lower on Friday, extending the notable losses it posted on Thursday on the back of weaker-than-expected US producer price data and a stronger euro.
The European Central Bank should revisit its communication stance in early 2018, accounts of its December meeting showed, suggesting that policymakers could soon start preparing markets for the end of the bank's massive stimulus.
The news gave the euro a further boost and pushed the single currency to a three year high against the dollar - up 0.8% to $1.2127.
The index saw price growth contract from 0.4% to -0.1% in December, a much worse outcome that the more modest slip to 0.2% that had been forecast by economists.
"Our target for USA 10-year treasuries is 2.8 - and we might afford up to 3 per cent - but going beyond that it's becoming an alert signal", said Amundi's Defend.
MARKET CALM: Global equity markets settled after some turmoil earlier in the week sparked by a news report that China might slow or halt purchases of U.S. Treasurys, which Beijing later challenged.
European Shares To Open Higher Despite Slumping Dollar
When the euro was created some 15 years ago, there was speculation that the new currency might come to challenge the dominance of the US dollar as the worldwide reserve currency of choice.
It dropped again as the session wore on but was still close to five-month highs at 0.52 percent.
European stocks finished at their lowest in a week Thursday, as investors considered a signal from the European Central Bank that it's positioning for a more hawkish view on monetary policy.
The yield on the benchmark 10-year Treasury note fell to 2.531 percent at 2:33 p.m. ET, while the yield on the 30-year Treasury bond fell to 2.862 percent.
In the other precious metals, the spot silver price rose $0.12 to $17.095-17.115 per oz.
The yields on German bonds also increased, with the two-year yield gaining 4 basis points to minus 0.57 percent.
U.S crude oil CLcv1 rose 50 cents to settle at $64.30 a barrel, while Brent LCOcv1 rose 61 cents to settle at $69.87.
Oil prices retreated from 2014 highs hit the previous day, but stayed near three-year highs on signs of tightening supply in the United States.