Bond prices logged their best one-day gain in about three months on Thursday after the U.S. government's auction of 30-year bonds drew the strongest demand since late last year.
The yield on the benchmark 10-year Treasury note fell to 2.383 percent from 2.478 percent on Wednesday, marking its biggest one-day decline since March 18. Thirty-year bond was at 3.10 percent, down 11 basis points on the day.
The Treasury Department auctioned $13 billion in 30-year bonds at a high yield of 3.138 percent, the highest since December. The bid-to-cover ratio, an indicator of demand, was 2.54, also the strongest since December.
Indirect bidders, which include major central banks, were awarded 52 percent, better than the 48 percent recent average. Direct bidders, which includes domestic money managers, brought 14 percent, versus a recent average of 16 percent.
Yields tumbled earlier on the back of upbeat U.S. data and after the International Monetary Fund said its team made "no progress" on resolving Greece's debt crisis, according to The Associated Press. An IMF spokesperson told reporters Thursday, "We are well away from an agreement."
Earlier, a report showed U.S. retail sales surged in May as households boosted purchases of automobiles and a range of other goods even as they paid a bit more for gasoline, the latest sign economic growth is finally gathering steam.