U.S. government debt prices pared losses Thursday following solid demand for an auction of 30-year bonds.
U.S. government debt prices fell ahead of the sale, after the European Central Bank cut key interest rates. Yields, which move inversely to prices, gave up some gains after the sale.
The yield for the benchmark 10-year Treasury note rose higher than 1.94 percent earlier in the day, but lost ground to 1.934 percent. The yield on the 30-year Treasury bond traded as high as 2.727 percent but reversed slightly to 2.696 percent.
The Treasury Department auctioned $12 billion in 30-year bonds at a high yield of 2.72 percent. The bid-to-cover ratio, an indicator of demand, was 2.33, the highest in three months, according to Reuters.
Indirect bidders, which include major central banks, were awarded 60.9 percent, compared to a recent average of 57 percent. Direct bidders, which include domestic money managers, bought 12 percent versus a recent average of 11 percent.