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U.S. Treasury yields saw a decline on Thursday as investors responded to new labor market data. The yield on the 2-year Treasury fell slightly by over 1 basis point, bringing it to 3.864%. Meanwhile, the 10-year Treasury yield dropped by more than 2 basis points, reaching 4.343%, and the 30-year long bond yield decreased by over 3 basis points to 4.849%.

This movement in yields is closely linked to fresh data revealing that weekly jobless claims were higher than expected. The Labor Department reported on Thursday that first-time filings for jobless benefits totaled 247,000 in the past week, surpassing the Dow Jones estimate of 236,000.

Thursday's reduction in yields followed substantial drops recorded on Wednesday, which were triggered by other disappointing economic indicators. In May, the services sector activity index unexpectedly dipped to 49.9%, slipping below the expansion threshold and falling short of the 52.1% forecast by Dow Jones. In a similar vein, private sector payrolls increased by only 37,000 in May, well below the anticipated 110,000.

Despite these figures missing forecasts, Deutsche Bank noted in a research publication on Thursday that the data is not alarming enough to reignite fears of a recession in the U.S. economy. Investors will now be turning their attention to May's nonfarm payrolls and the unemployment rate, which are set to be released on Friday.