U.S. weekly jobless claims hit 220,000 for the week ending Jan. 13, the Labor Department said. The reading was the lowest level reported by the Labor Department in 45 years. Economists polled by Reuters had been expecting roughly 250,000 jobless claims.
Thursday's economic data added to Wednesday's strong numbers, when the Federal Reserve said that an uptick in utility output carried U.S. industrial production higher.
U.S. industrial production rose 0.9 percent in December versus expectations of a 0.4 percent increase.
The Federal Reserve's so-called Beige Book also revealed that the central bank believes the U.S. economy and inflation are expanding. Multiple Fed districts documented increases in manufacturing and construction, while the body remains optimistic that latent pricing will rise in 2018.
Craig Bishop, vice president of U.S. fixed income at RBC Wealth Management, said that the solid numbers are pushing investors away from debt and back into equities.
"Over the last 24 hours we had some economic data that came in slightly stronger than expected," he said. "We're still in the camp that [rates] will remain relatively well contained ... growth in the economy will remain right around the 2.5 level."
Bishop added that he sees three rate hikes from the Fed in 2018 and expects limited inflation growth.
The spread between two- and 10-year yields hovered around 0.56 percentage point, down from 1.24 points at the start of 2017, though up from lows around 0.5 percentage point earlier in January. The spread is often considered a recession barometer, with higher short-term rates and lower long-term rates suggesting weaker outlook.
—CNBC's Christopher Hayes contributed to this report.