U.S. bonds fell on Thursday as investors unwound safe-haven bids spurred by the Ukraine crisis ahead of Friday's key nonfarm payrolls report and following data showing fewer Americans than expected filed new claims for jobless benefits.
Investors finished reducing their bond holdings on the Ukraine crisis as they looked ahead to results from a referendum vote due in 10 days that will decide whether Crimea will become a part of Russia.
"German Bunds were sensitive to the Ukraine situation and sold off a bit. Treasuries and other safe havens have followed," said Steve Van Order, a fixed income strategist with Calvert Investments in Bethesda, Maryland.
Wednesday's weak private employment data and a severe winter have clouded predictions for Friday's unemployment report, said Van Order.
(Read more: Friday's jobs report: No surprise if it's chilled)
"You could have almost anything come out tomorrow," he said.
The number of Americans filing new claims for unemployment benefits hit a three-month low last week, a sign of strength in a labor market that has been hobbled by severe weather. That sent yields to a session high of 2.7410 percent.
Losses were capped by the European Central Bank's decision to leave interest rates unchanged, holding its nerve in the face of uncomfortably low inflation.
(Read more: US claims fall, but workers grow less productive)
Ten-year notes were last down 8/32 in price, pulling yields up to 2.736 percent after Wednesday's close of 2.696 percent. Thirty-year bonds fell 22/32, sending yields to 3.684 percent from Wednesday's close of 3.644 percent.
Traders see 10-year note yields finding support at 2.75 percent, the 100-day moving average and resistance at the 2.60 percent.