Treasury Department auctions $16 billion of 30-year bonds at a high yield of 3.092%

US 10-YR
US 30-YR

U.S. government bonds pared earlier gains on Thursday after the U.S. government's auction of 30-year bonds saw weak demand.

The Treasury Department auctioned $16 billion in 30-year bonds at a high yield of 3.092 percent, which was higher than last month's 3.074 percent.

The bid-to-cover ratio, an indicator of demand, was the weakest since May at 2.29 and below a recent average of 2.46.

Indirect bidders, which include major central banks, were awarded 43.8, that group's smallest share since July. Direct bidders, which includes domestic money managers, brought 13.8, versus a recent average of 17 percent.

U.S. 10-year notes fell 1/32 in price to yield 2.37 percent, from a yield of 2.37 percent late Wednesday. U.S. 30-year bonds were last down 8/32 to yield 3.09 percent, from a yield of 3.08 percent late Wednesday.

Prices rose slightly earlier after a report showed U.S. jobless claims remained near a 14-year low in a reminder that one small part of the labor market has returned to full health.

Data showed the ranks of jobless Americans rose by more than expected in the latest week, to 290,000, yet still remained below the psychologically key 300,000 level and within view of pre-recession lows.

Economists polled by Reuters had forecast claims increasing to 280,000 last week

Reuters contributed to this report.