Treasury prices remained higher Thursday, pushing yields down from six months high, after a report showed sales of new homes rose less than predicted last month. Ten-year note yields (UST10Y 3.59, -0.13, -3.41%) fell 8 basis points to 3.64%. Treasurys were higher before the data as overseas investors found bonds attractive after 10-year yields jumped the most since October on Wednesday due to mortgage-related hedging. The move sparked fears that higher borrowing costs could short circuit the economy's recovery. Still to come, the Treasury Department will auction $26 billion of 7-year notes.

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