Treasury yields fell Thursday following the release of fresh U.S. unemployment data and a bond auction that was met with strong demand.

The yield on the 10-year Treasury was down more than 2 basis points at 4.457%. The 2-year Treasury yield dipped about 3 basis points to 4.815%.

Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.

Weekly initial jobless claims came in at the highest level since August, reaching 231,000.

"While the absolute level of initial claims currently isn't concerning, the upward surge in the data warrants caution. Continuing this pace would certainly lead to elevated unemployment on a relative basis," Interactive Brokers senior economist José Torres wrote.

Yields were also under pressure after the Treasury Department sold $25 billion worth of 30-year bonds.

The data comes as investors weigh the chances of lower interest rates taking place this year. The bid-to-cover ratio, an indicator of demand, came in at 2.41 — above a 10-auction average. Direct bidders, which include mutual funds and insurance companies, reached their highest level since July 2023 at 19.8%.

The moves come after a series of remarks from Federal Reserve officials, as investors considered what the path ahead for monetary policy could look like. Uncertainty about when, if and how often, rates will be cut this year has been persistent in recent weeks.

Boston Fed President Susan Collins on Wednesday became the latest central bank policymaker to indicate that interest rates will likely be steady until inflation is clearly moving toward the Fed's 2% target range. Collins' comments echoed those made by Minneapolis Fed President Neel Kashkari and Richmond Fed President Tom Barkin earlier in the week. They were also all broadly in line with the guidance issued by the Fed after its latest meeting earlier this month.