By Deborah Levine, MarketWatch NEW YORK (MarketWatch) -- Treasury prices extended a decline, pushing yields up, as comments from European Central Bank President Jean-Claude Trichet weighed on the dollar and boosted stocks, reducing the appeal of the relative safe-haven status of U.S. debt. Also in focus, traders wonder how much interest investors will exhibit when the government's sale of 30-year bonds takes place later Thursday. Yields on 10-year notes (UST10Y 3.25, +0.07, +2.30%) , which move inversely to prices, rose 7 basis points to 3.25%. A basis point is 0.01%. Yields on 2-year notes (UST2YR 0.76, +0.04, +4.96%) increased 3 basis points to 0.75%. "Yields are probing higher still after a relief rally on stocks from a number of fronts," said analysts at Action Economics. Trichet said the ECB would continue its bond-buying program and unlimited liquidity programs, but not expand them. Read about Trichet, liquidity. That gave currency traders reason to reverse bets that the euro -- already down 16% this year -- would continue falling. That also sent yields on German and British debt yields higher, spilling over into weakness for U.S. Treasurys, according to Action Economics. The euro (CUR_EURUSD 1.2113, +0.0132, +1.1018%) topped $1.21 for the first time in almost a week and the S&P 500 Index (SPX 1,079, +23.04, +2.18%) jumped 2.2%. Read about euro, dollar. Auction outlook The Treasury Department will accept bids on $13 billion in 30-year bonds (UST30Y 4.17, +0.06, +1.44%) up for auction until 1 p.m. Eastern time. The sale follows auctions of 3-year (UST3YR 1.24, +0.05, +3.77%) and 10-year notes this week. Read more on 10-year auction results. "We expect another lukewarm reception, very much like the 10-year yesterday," said Tom di Galoma, head of U.S. rates trading at Guggenheim Partners, of the 30-year's auction. The 30-year auction is a reopening, meaning the debt being sold will mature on the same date and carry the same coupon as quarterly-issued securities -- in this case, notes sold last month. The amount is the same as at the previous reopening of the benchmark security. At the last four reopenings of 30-year bonds, bidders offered to buy 2.69 times the amount of debt sold, according to RBS Securities. Indirect bidders, a group that includes foreign central banks, bought an average of 35.4% of recent sales. Direct bidders, a group which includes domestic money managers, purchased another 16.7% on average. Treasurys extended losses modestly after the Labor Department said the number of initial jobless claims filed last week fell by a fewer-than-forecast 3,000 to a total of 456,000. Read about jobless claims. Separately, the Commerce Department said the nation's trade deficit for April increased to the widest level seen since December 2008. See more on trade deficit.

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