After being prodded up to session highs by multiple U.S. economic data points, U.S. Treasury yields pared gains on Thursday.
The number of Americans filing new claims for unemployment benefits last week dropped to the lowest level since 2000, suggesting March's moderation in job growth was likely an aberration.
Initial claims for state unemployment benefits declined 34,000 to a seasonally adjusted 262,000 for the week ended April 25, the lowest reading since April 2000, the Labor Department said on Thursday.
Consumer spending in the U.S. also rose 0.4 percent in March, slightly under analyst expectations of 0.5 percent.
The Chicago PMI also came in higher than expected at 52.3. Analysts expected the number to come in at 50.0.
Benchmark U.S. 10-year Treasury notes traded at 2.0399 percent after trading as high as 2.1074 percent. (Bond yields move inversely to prices.)