U.S. government debt prices rose on Thursday, as investors sought the safety of government bonds amid concerns about global growth following weak manufacturing data from China and Europe.
Data showing increased underlying U.S. inflation pressures last month and lower initial weekly jobless claims helped yields edge higher. But pessimistic data out of Europe and China outweighed the impact of sturdy U.S. data.
"This one snapshot of inflation doesn't undo all the potential headwinds in China, Japan, and Europe and certainly we'll wait and see if this becomes a trend rather than the exception," said Tyler Tucci, Treasury strategist, at RBS Securities in Stamford, Connecticut.
"It's a step in the right direction, but a step is all it is."
In afternoon trading, the 10-year Treasury note was up 7/32 in price to yield 2.34 percent from 2.36 percent late Wednesday. Five-year notes were up 3/32, yielding 1.63 percent.
U.S. 30-year Treasury bonds were up 17/32 in price, with a yield of 3.05 percent, from 3.07 percent at the close on Wednesday.