U.S. Treasury prices fell on signs that the labor market might be on the mend.
Traders often move money into Treasuries when they are nervous about the health of the economy. Signs that the economy is improving lead them to sell bonds.
The price of the 10-year Treasury note fell 40.62 cents for every $100 invested Thursday. That pushed the yield up to 3.41 percent from 3.36 percent late Wednesday. Bond yields rise when their prices fall.
The U.S. Labor Department said fewer people applied for unemployment benefits last week, evidence that layoffs are slowing. The average number of unemployment applications over the last four weeks dropped to the lowest level since July 2008. The numbers also put pressure on the bond markets until next week when the monthly employment report comes out April 1.
Positive economic news has taken overtaken worries over high oil prices, the unrest in Libya, Europe's debt issues, and Japan's nuclear crisis.
In other trading, the 30-year bond fell 50 cents, sending the yield up to 4.49 percent from 4.44 percent the day before.
In the market for short-term Treasury bills, the three-month T-bill remained flat at 0.08 percent. Its discount was 0.07 percent.