Thirty-year bonds were down 1-4/32, their yields rising to 3.47 percent from 3.40 percent late on Wednesday.

Reinforcing the move was news that new US claims for unemployment benefits fell to a four-year low last week, suggesting strengthening in the labor market. A regional manufacturing survey also showed the pace of manufacturing in New York picked up modestly in March. Price pressures remained subdued with producer prices excluding food and energy items rose 0.2 percent in February, the government said.