U.S. 10-year Treasurys prices gained on Thursday after a three-day back-up in yields brought in some buyers, and after data showed that the number of Americans filing new claims for unemployment benefits rose last week. Yields have jumped this week on stronger economic data and as investors take greater hope that Spain will get credit support from Europe's bailout fund, boosting risk-taking and reducing demand for safe-haven debt. Prices temporarily extended gains on Thursday after jobless claims rose, though the data still pointed to a slowly healing labor market. "It was a little bit higher than expected,'' said Sean Murphy, a Treasurys trader at Societe Generale in New York. Bonds stabilized on Thursday also after heavy selling on Wednesday, when investors adjusted for the improving economic data and apparently more stable European situation, which has boosted riskier assets like stocks and hurt bonds. This is likely to keep yields more elevated than in previous weeks, said Murphy. "The 'risk on' trade is strengthening,'' he said. Benchmark 10-year notes were last up 10/32 in price to yield 1.791 percent, down from 1.82 percent late on Wednesday. The yields have risen from 1.66 percent on Friday. Thirty-year bonds rose 1-2/32 in price to yield 2.951 percent, down from 3.00 percent on Wednesday. Speculation that the Federal Reserve may modify language in its guidance over how long it will hold rates down also caused some volatility in intermediate-dated debt, traders said. The U.S. central bank has said it will hold rates near zero until 2015, but some investors are speculating that due to the improving data, the timeline could be shortened when the Fed meets next week.

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