U.S. Treasuries prices trimmed losses as U.S. stock index futures turned lower after Goldman Sachs Group (GS.N) reported its third-quarter results.
Benchmark 10-year notes US10YT=RR were down 4/32, their yields rising to 3.43 percent from 3.42 percent on Wednesday.
S&P 500 futures SPc1, Dow Jones industrial average futures DJc1, and Nasdaq 100 futures NDc1 were all lower.
Goldman Sachs Group Inc (GS.N) said its quarterly profit nearly quadrupled from the most closely comparable quarter a year ago.
The U.S. Treasury market will take cues from data on consumer prices and jobless claims, but stocks could also govern movements as investors assess their appetite for risk during the company earnings season.
On Wednesday, bonds traded lower in price as investors moved into stocks, and the Dow Jones industrial average .DJI climbed above the psychologically important 10,000 level for the first time since early October 2008.
MANUFACTURING MEASURES WILL GET ATTENTION
Two manufacturing measures to be released on Thursday will also assess the factory sector heading into the fourth quarter.
The Philadelphia Federal Reserve Bank's business activity index, a measure of factory activity in the U.S. Mid-Atlantic region, is expected to have eased to 12.0 in October from 14.1 in September, according to the median of forecasts from economists polled by Reuters. The September level was the highest since June 2007.
Meanwhile, the New York Fed's Empire State general business conditions index, a gauge of manufacturing in New York State, is expected slip to 18.00 this month from 18.88 in September. September's reading was the highest since November 2007.
Analysts said the market will look to see if the measures reflect a cooling off of early signs of recovery in the manufacturing sector.
Any backing off of those numbers will support the notion that the third quarter started like a lion and ended like a lamb, said Cary Leahey, senior managing director at Decision Economics in New York.
JOBLESS CLAIMS IN MARKET'S FOCUS
Initial jobless claims for the week ended October 10 are expected to have risen marginally to 525,000 from nine-month low of 521,000 the week previous.
We think that the growth we are going to have in the second half will give us a small positive (nonfarm) payrolls number by early next year, said Josh Stiles, bond strategist at IDEAglobal in New York.
The Labor Department will release its Consumer Price Index at 8:30 ET (1230 GMT). Prices are expected to have risen marginally in September, according to Reuters' poll.
The median of forecasts from economists is for consumer prices to have risen by 0.2 percent last month after a 0.4 percent rise in August. Core prices, which do not include food and energy costs, are expected to have risen by 0.1 percent from a 0.1 percent increase the month previous.