US Treasury debt prices rose on Thursday on softer-than-expected July retail sales, which surprised a bond market that had grown accustomed to a steady drumbeat of strong economic data in recent weeks.
The US government said retail sales advanced 1.8 percent in July, below economists' expectations of a 2.2 percent rise and barely above June's 1.7 percent gain. Sales excluding autos rose just 0.3 percent, half what economists had forecast.
Excluding both autos and gasoline, retail sales would have been unchanged in July, the government said.
Still, analysts said the retail sales data did little to alter the overall outlook that US economy growth is robust or modify expectations about the Federal Reserve's plans to raise interest rates steadily to head off inflation.
The two-year note erased early losses to trade 1/32 higher for a yield of 4.10 percent, compared with 4.12 percent on Wednesday.
Benchmark 10-year notes gained 4/32 for a yield of 4.38 percent, compared with 4.40 percent late on Wednesday.
The 30-year bond rose 10/32 to yield 4.55 percent, down from 4.58 percent on Wednesday.
The new five-year note was yielding 4.22 percent after fetching a high yield of 4.223 percent at auction on Wednesday.
Other data released on Thursday showed weekly first-time jobless claims fell to 308,000 in the week ended August 6, a lower number than economists had expected, showing strength in the labour market.
The Commerce Department also reported that business inventories were unchanged in June after rising an unrevised 0.1 percent in May.