Bonds

U.S. Treasury yields rise slightly as labor market data improves

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U.S. bonds yields rose slightly on Thursday as two new data releases pointed to a continued recovery in the U.S. labor market.

The yield on the benchmark 10-year Treasury note rose about 4 basis points to 1.63% by 4:00 p.m. ET. The yield on the 30-year Treasury bond ticked up to 2.3%. Yields move inversely to prices and 1 basis point equals 0.01%. After a gain to start the year, rates have been stuck around these levels for six weeks.

Treasurys

Private payrolls rose more than expected in May, according to a report from ADP, while weekly jobless claims came in near expectations at 385,000. That continues a downward trend in initial claims. The Bureau of Labor Statistics is scheduled to release the May jobs report Friday morning.

Investors are monitoring inflation dynamics as the U.S. economy reopens. Speaking to CNBC on Wednesday, former New York Fed President William Dudley said the recent surge in inflation numbers is transitory for now, but it could become more persistent going forward.

Meanwhile, the U.S. Federal Reserve said on Wednesday that U.S. businesses are struggling to find enough workers and are thus offering higher wages to lure them into work.

Elsewhere, Atlanta Fed President Raphael Bostic spoke at 12.30 p.m. ET and Dallas Fed President Robert Kaplan addressed the Rice University Jones Graduate School of Business.

-CNBC's Jesse Pound and Tanaya Macheel contributed to this report.