German bunds — viewed as a "safe-haven" asset comparable to U.S. debt — U.K. Gilts, French OATs and Japanese bonds fell as well.
The 14-country OPEC oil cartel agreed to seek a cut in crude production when they meet formally in November — paving the way for the first cut in oil supply since 2008. Crude oil futures rose nearly 6 percent on Wednesday on news of the deal, but pared some gains on Thursday as investors grew skeptical about the details of the agreement and how it will be enforced.
"There are the usual unanswered questions about implementation, not least regarding how the output cuts will be divvied up among members; how Iran, Nigeria and Libya might be given greater leeway to increase production without jeopardizing the deal as a whole; and how non-members such as Russia, Mexico, North American shale producers and others will respond," Emily Nicol, economist at Daiwa Capital Markets, said in a note on Thursday.
Data-wise, the third read on second-quarter GDP beat estimates, while weekly jobless claims rose less than expected. Pending home sales for August fell 2.4 percent.
No U.S. Treasury auctions are schedule for Thursday, but the offering amount for sales of 13-week and 26-week bills on Monday will be announced.