NEW YORK (CNNMoney) -- Treasury prices edged lower Thursday as investors reacted to a better-than-expected government report on initial unemployment claims and a bond auction.
The yield on the benchmark 10-year note rose to 3.71% after hovering near 3.69% earlier in the day.
Bond yields and prices move in opposite directions.
The jobs report showed that the number of Americans filing first-time claims for unemployment benefits fell to 383,000 last week -- the lowest number in two-and-a-half years.
"The jobs report lends credence to the outlook that labor market is really improving," said David Coard, head of fixed-income trading at Williams Capital Group. "There may be some weather-related noise, but over the last several weeks, the trend definitely looks downward."
Later Thursday, the Treasury auctioned off $16 billion in 30-year bonds, following a robust 10-year note auction on Wednesday that Coard described as "smashing."
Wednesday's auction produced a bid-to-cover ratio of 3.23 times, which indicates extremely strong demand. Thursday's auction yielded a bid-to-cover ratio of 2.51.
In addition to the auction, investors are also keeping a close watch on Egypt, where reports indicate that weeks of protests may culminate in the resignation of President Hosni Mubarak.
Coard said that tumultuous geo-political events have provided support for Treasury prices in recent weeks, as investors have sought the safe haven of U.S. Treasury bonds.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.34%||4.36%|
|15 yr fixed||3.69%||3.68%|
|30 yr refi||4.34%||4.35%|
|15 yr refi||3.68%||3.67%|
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