U.S. government debt prices pared some losses on Thursday after a report showed factory activity in the U.S. mid-Atlantic region decelerated in February to its slowest level in a year.
The Philadelphia Federal Reserve Bank said its business activity index fell to 5.2, the lowest since February 2014, from January's 6.3. Economists polled by Reuters had forecast an increase to 9.3, according to a Reuters poll.
Earlier, initial claims for state unemployment benefits dropped 21,000 to a seasonally adjusted 283,000 for the week ended Feb. 14, the Labor Department said on Thursday.
On Wednesday, U.S. Federal Reserve policymakers sounded dovish in its latest released minutes, diffusing investor fears of a potential rate hike as early as June.
The U.S. 10-year benchmark Treasury note was down 7/32 in price, with the yield at 2.10 percent. It closed at 2.0668 percent on Wednesday, down from the seven-week high of 2.143 seen late on Tuesday.