U.S. government debt prices rose on Thursday as investors reacted to the Federal Reserve's decision to hike rates for the first time in nine years, as well as falling stock and oil prices.
In the wake of the Fed's decision, the yield curve flattened.
The Fed had convinced markets that it would raise rates by a quarter at its December meeting and continue to deliver a relatively dovish message about the future path of rate hikes. It did both on Wednesday afternoon. Fed Chair Janet Yellen stressed continued focus on economic progress, including inflation, which is lagging the Fed's 2 percent target.
Treasurys
Yields on longer-dated Treasuries fell in morning trading after data showed that the number of Americans filing for unemployment benefits last week fell from a five-month high, suggesting labor market healing that could lead to further interest rate hikes next year.
"Things are settling down post Fed, but when will the Fed hike again? That's now front and center. If data over the next few months comes in solid, it'll clear the way for the Fed to keep hiking," said Gennadiy Goldberg, interest rate strategist at TD Securities in New York.
The yield on the benchmark 10-year Treasury note fell on Thursday to around 2.2296 percent, after closing at 2.289 percent. The yield on the 30-year Treasury bond was also lower, at 2.9338 percent, after closing at 3.004 percent.
In oil markets, Brent crude traded at around $37.10 a barrel on Thursday, down 0.78 percent, while U.S. crude settled down 57 cents, or 1.6 percent, at $34.95 a barrel.
— Reuters and CNBC's Patti Domm contributed to this report