NEW YORK (MarketWatch) -- Treasurys gained Thursday, pushing two-year yields to the lowest since March, after jobless claims rose in the latest week, pushing the level of continuing claims to the highest in 25 years. Two-year note yields fell 6 basis points to 1.30%, the lowest since risk aversion after the Bear Stearns collapse sent investors clamoring for the safety of government debt. First-time claims for unemployment benefits rose 4,000 to 481,000 in the week ended Nov. 1, the Labor Department said. The number of U.S. residents collecting state unemployment benefits reached the highest level in 25 years, rising by 122,000 to a seasonally adjusted 3.84 million in the week ending Oct. 25. Treasurys had declined in earlier trading as U.S. equity futures pointed lower. The Bank of England slashed rates more than forecast and the European Central Bank reduced its benchmark rate in the hopes of propping up their economies.
