Worries about a weak economy have investors buying up Treasurys Thursday after the number of people applying for unemployment benefits soared last week.
The price of the 10-year Treasury note rose 59 cents per $100 invested in late trading. Its yield, which moves in the opposite direction, fell to 3.15 percent from 3.22 percent late Wednesday.
The Labor Department said jobless claims grew by 43,000 to 474,000 last week. That marked the third increase in four weeks and renewed concerns that hiring may be slowing. It also follows other recent reports offering evidence of a moderating economy.
Earlier this week, two reports showed growth in the manufacturing and services sectors slowed last month. Last week, gross domestic product came in slightly lower than economists had forecast.
Traders are looking toward April's employment report due out Friday.
If the recovery appears gradual, the Federal Reserve likely will maintain its loose monetary policy of keeping interest rates low to fuel growth.
In other trading, the price of the 30-year bond rose $1.15 cents per $100 invested, while its yield fell to 4.27 percent from 4.32 percent late Tuesday. The yield on the two-year stayed flat at 0.58 percent.
In the market for short-term Treasury bills, the three-month T-bill paid a 0 percent yield. Its discount was 0.01 percent.