By Deborah Levine, MarketWatch NEW YORK (MarketWatch) -- Treasury prices turned higher Thursday after a trio of weak economic reports soured hopes of an economic rebound and weighed on stocks, increased the relative appeal of U.S. debt. Yields on 10-year notes (UST10Y 2.89, -0.04, -1.40%) decreased 4 basis points to 2.89%. The 10-year yield closed Wednesday at the lowest level since April 2009. Bond yields move inversely to prices and a basis point is 0.01%. Yields on 2-year notes (UST2YR 0.61, +0.00, +0.66%) was little changed at 0.61%. The yield closed at 0.609% on Tuesday, the lowest level on record. The rally may be limited as "after such a large run lower in yields, there are no real sellers, just a slowing down of buying, which is why yields are grinding lower," said George Goncalves, bond strategist at Nomura Securities. The Labor Department said earlier that initial claims for U.S. jobless benefits rose to 472,000 last week, up 13,000. Economists surveyed by MarketWatch had expected first-time claims to fall to 455,000 on the week. Read more on jobless claims. The claims data come one day before the Labor Department's monthly report on joblessness and nonfarm payrolls, one of the most closely watched economic reports on the calendar. Economists surveyed by MarketWatch expect the government to say on Friday the economy lost 130,000 in June, including the loss of some 250,000 temporary workers hired by the Census Bureau. Treasurys turned more notably higher after the Institute for Supply Management's manufacturing index fell to 56.2 in June from 59.7 in May, more than many analysts anticipated. A separate report showed pending home sales fell 30% in May. See more on ISM. It's "another round of disappointing data for the U.S. economy," said strategists at CRT Capital Group. "The Treasury market found meaningful support."

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