Treasury prices traded in a narrow range Thursday as investors welcomed additional signs that inflation is likely to remain in check.

In late trading, the 10-year note, often used as a benchmark for interest rates on consumer loans, slipped 1/32 to 100 24/32. Its yield remained unchanged at 3.53 percent from late Wednesday.

Productivity, the output per hour of work, jumped at its fastest pace in six years, a sign employers are getting more out of fewer workers. Higher productivity should help keep wages in check as employers don't have to add to their payroll, which in turn can hold inflation to a minimum.

The productivity report comes a day after the Federal Reserve kept its key lending rate at historic lows on Wednesday, saying it does not foresee inflation being a problem.

Stocks surged Thursday after a better-than-expected report on initial jobless benefits claims. The Dow ended above 10,000 for the first time in two weeks after gaining 204 points. Traders diving into the stock market will often invest money in stocks at the expense of safe havens like government debt.

In other trading, the 30-year bond fell 1/32 to 101 18/32. Its yield was flat at 4.40 percent.

The two-year note rose 1/32 to 100 7/32, while its yield slipped to 0.89 percent from 0.91 percent.

The yield on the three-month T-bill fell to 0.03 percent from 0.04 percent. Its discount rate was 0.04 percent.

The cost of borrowing between banks fell fractionally. The British Bankers' Association said the rate on three-month loans in dollars _ the London Interbank Offered Rate, or Libor _ fell to 0.27531 percent from 0.27750.