Treasury prices rose slightly Thursday, giving up some of their earlier gains.
The yield on the 10-year Treasury note edged down to 1.95 percent versus 1.97 percent late Wednesday. Its price rose 15.6 cents per $100 invested. The yield had been as low as 1.92 percent earlier.
Trading was extremely quiet ahead of the Christmas holiday. With demand for safe investments still high as Europe grapples with its sovereign debt crisis, the bond market largely brushed off the latest sign of strength in the U.S. jobs market.
The number of people applying for unemployment benefits dropped last week to the lowest level since April 2008, the Labor Department reported.
The yield on the 30-year bond fell to 2.98 percent from 3 percent. Its price rose 40.6 cents per $100.
In other trading, the yield on the two-year Treasury note edged down to 0.27 percent from 0.28 percent. The three-month T-bill paid a yield of 0.01 percent. Its discount wasn't available.