By Deborah Levine 10_YEAR 2_YEAR DXY EURUSD NEW YORK (MarketWatch) -- Treasury prices onto solid gains, pushing yields toward record lows, and the dollar slightly pared its advance on Thursday after a pair of reports showed U.S. jobless claims increased to 408,000 in the latest week and consumer inflation rose 0.5% in July, both higher than economists expected. Yields on 10-year notes 10_YEAR -3.00% , which move inversely to prices, fell 8 basis points to 2.09%. They touched 2.08% before the data, heading back to the record low of 2.03% set on Aug. 9. Yields on 2-year notes 2_YEAR -4.02% slipped 1 basis point to 0.19%, after falling within 1 basis point of the all-time low of 0.16%. The dollar index DXY +0.32% , which measures the greenback against a basket of six currencies, slipped to 74.007, from 74.034 before the data and still up from 73.697 in late North American trading on Wednesday. The euro EURUSD -0.33% traded at $1.4382, versus $1.4374 before the data and $1.4447 Wednesday. Treasury prices and the dollar were up before the data as "lower domestic equities and a refocus on the weakening economic outlook supported the long-end of the Treasury market," said strategists at CRT Capital Group. Still to come is a regional manufacturing report and data on existing home sales as well as the Treasury Department's announcement of how much in debt it will auction next week.

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