NEW YORK (CNN/Money) - Treasury prices were higher Thursday afternoon after the third and last leg of the government's record refunding drew few surprises, while the dollar fell on a series of mixed economic reports.

The sale of $18 billion in 10-year notes had a bid-to-cover ratio 2.0 times the amount on offer, well up from the very low 1.22 seen in the previous auction but dead in line with the longer-term average of 2.01. Bid-to-cover refers to how much interest there is in a new issue compared with the amount being offered.

The Treasury's $60 billion refunding has had a mixed reception this week, with a three-year sale drawing dismal demand and five-year notes selling like hot cakes.

"We had a fairly decent bid-to-cover that was pretty much in line with the historical average and again indicated that there was robust demand for the issue," Gemma Wright, a debt strategist at Barclays Capital, told Reuters.

At around 4:00 p.m. ET, the benchmark 10-year note rose 16/32 of a point in price to 95-12/32, lowering the yield to 4.21 percent compared to 4.28 percent late Wednesday afternoon. The 30-year bond added 12/32 of a point in price to 102-11/32, pushing the yield down to 5.21 percent from 5.24 percent late afternoon Wednesday.

The two-year note gained 2/32 of a point in price to 99-19/32, with the yield at 1.72 percent, while the five-year note added 12/32 of a point in price to 100-10/32, yielding 3.17 percent.

Treasurys have been sliding over the past few weeks on concerns that improving economic news will lead to rising interest rates, which wouldn't bode well for bond investors, as it would mean that long-term investments could erode in value.

The government issued its weekly report on initial jobless claims early Thursday, saying the number of American filing new claims remained under 400,000 for the third week in a row. Last week, 390,000 new claims were filed, less than the 395,000 economists were expecting and down from a revised 393,000 the previous week.

In addition, the preliminary reading on second-quarter non-farm productivity showed a rise of 5.7 percent versus the 4.1 consensus and up from 1.9 percent in the first quarter. Unit labor costs dipped more than expected, losing 2.1 percent after losing 2 percent last quarter and versus the forecast for a drop of 1 percent.

And morning reports from the nation's chain stores showing an overall rise in sales in July helped boost the sector and broader market.

Meanwhile, the dollar edged lower against the yen and the euro, after pulling ahead of both currencies in late day trading on Wednesday.

At around 4:00 p.m. ET, the dollar bought ¥119.03, off from ¥120.17 late afternoon Wednesday, while the euro was at $1.1373, up from $1.1349 late Wednesday afternoon.

Initially, the greenback flitted to and fro in narrow ranges in response to the day's economic news.

"We are stuck in this range of $1.1300 to $1.1450 in euro/dollar until some economic number really paints a picture, a clear picture that fundamental economic data is showing signs of a good recovery," Brian Taylor, a senior trader at Manufacturers and Traders Bank in Buffalo, N.Y., told Reuters.  

-- from staff and wire reports