US Treasury prices fell on Thursday after a surprising decline in the number of Americans applying for first-time jobless benefits shook an already battered market.
With weekly claims now at the lowest level in over three years, traders worried that the Federal Reserve might begin hiking interest rates sooner than previously thought.
Fed officials have made it clear they would like to see several months of solid job gains before the central bank begins to tighten monetary policy. Some think the recent strides in employment could provide just the right foundation for such a move.
The benchmark 10-year note dipped 7/32 for a yield of 4.19 percent, from 4.16 percent late Wednesday. Just before a large increase in March payrolls was reported last Friday, yields were as low as 3.87 percent.
Two-year yields rose to 1.85 percent from 1.84 percent, while yields on five-year notes climbed to 3.22 percent from 3.19 percent. The 30-year bond was off 10/32 to yield 5.03 percent, from 5.01 percent.