NEW YORK (CNN/Money) - Benchmark U.S. Treasury yields suffered their steepest single-session spike this year Friday as stocks surged for a second day, sparking a mass exodus out of safe-haven debt.

Prices on the benchmark 10-year note fell more than a point and those on the 30-year almost two points as an early close for a long weekend gave investors an added reason to lock in profits.

The 10-year yield, which moves in the opposite direction to prices, leaped to 3.8 percent from Thursday's 3.66 percent, the biggest one-day percentage rise since December last year.

The two-year note slipped 6/32 of a point to 100-3/32, pushing yields to 1.83 percent. The five-year note fell 20/32 of a point to 102-5/32, with a yield of 2.77 percent.

The benchmark 10-year note shed 1-7/32 to 104-20/32, pushing the yield to 3.8 percent from 3.66, and the 30-year bond dropped 1-20/32 to 108-19/32 with a yield of 4.82 percent, up from Thursday's 4.72 percent.

"Bonds were overbought, equities were oversold and both were overdue a correction," said Kenneth Hackel, chief U.S. fixed-income strategist at Merrill Lynch.

All the major equity indexes were up more than 4 percent and still had time to trade since the stock market closes as normal Friday and is open on Monday.

"Treasurys also went too far pricing in a return to recession like it was a fait accompli, and I think people have realized the economy is not quite that disastrous," added Hackle. Earlier this week, yields on the benchmark note hit a 44-year trough of 3.56 percent on speculation the Federal Reserve would have to cut rates to rescue the economy.

The bond market closed early Friday ahead of a three-day weekend, in observance of Columbus Day on Monday.

In the currency market, the dollar slipped against the euro and gained on the yen. The euro bought 98.6 U.S. cents, up from 98.51 cents Thursday. The dollar bought ¥124.08, up from ¥123.63 Thursday.  

-- from staff and wire reports