U.S. Treasury yields inched down slightly on Thursday following weekly jobless claims data that came in lower than expected.
Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 270,000 for the week ended Aug. 1, the Labor Department said on Thursday. Claims for the prior week were unrevised.
Earlier in the day, U.S. government debt prices were trading flat as investors prepared for Friday's key employment report, which could be a deciding factor in whether the U.S. Federal Reserve decides to raise interest rates later this year.
Goldman Sachs economists raised their forecast for nonfarm payrolls to 225,000 from 210,000 after the ISM nonmanufacturing survey surged to a 10-year high and included a surprisingly strong employment component.