NEW YORK: US government debt prices rose on Thursday in advance of data on jobless claims and a $29 billion auction of seven-year notes.
Nagging jitters about the euro zone's fiscal woes and the perception the Federal Reserve might consider more stimulus to help the US economy revived bids for lower-risk US Treasuries with benchmark yields falling near two-week lows.
Earlier this week Fed Chairman Ben Bernanke made comments, including in a television interview, that the US economy remains vulnerable despite recent encouraging data on job growth. However, he stopped short of signaling the US central bank might soon embark on a third round of large-scale bond purchase, known as QE3, to boost sluggish economic growth.
"He does seem to express a more pessimistic tilt," John Donaldson, director of fixed income at Haverford Investments at Radnor, Pennsylvania, which manages $6.5 billion in assets, said of Bernanke's remarks on the economy this week.
Bernanke noted the current unemployment rate, currently at 8.3 percent, is worrisome given the outlook of tepid growth.
At 8:30 a.m. (1230 GMT), the Labor Department will release its weekly figures on unemployment benefits which fell to a fresh four-year low in the week ended March 17. Some analysts said the decline in jobless claims could be exaggerated because the mild winter across the United States has kept construction and other weather-sensitive industries from laying off workers.
At the same time, the Commerce Department will report its final reading on fourth-quarter gross domestic product, which likely held at 3.0 percent.
The benchmark 10-year Treasury note was 4/32 higher in price with its yield at 2.19 percent, down nearly 2 basis points late on Tuesday.
The 30-year bond last traded up 10/32, yielding 3.29 percent, down about 2 basis points from Tuesday.