Investors favored selling longer-dated debt as the US Treasury yield curve had compressed to its tightest level in more than a decade earlier this week.

Short-term Treasury yields were little changed ahead of the all-important nonfarm payrolls report scheduled on Friday, increasing the yield premium between long- and short-dated notes.

Yields on two- and three-year notes both hit their lowest level in more than eight years on Wednesday.

"The curve has been flattening a lot over the last couple months and has continued recently too. I think it's more just a little cooling off on that trend," said Thomas Simons, money market economist at Jeffries & Co. "The front end has already gotten beat up enough.

The long end, on the other hand, rates are pretty low when you think about it."

Simons also pointed to news headlines suggesting US lawmakers were closer to coming to terms on an agreement to avert a government shutdown.

The difference between yield on two- and 10-year notes touched its lowest since 2007 on Wednesday. The spread reversed course Thursday, widening as 10- and 30-year yields rose.

Benchmark US 10-year Treasury notes fell 10/32 in price to yield 2.37 percent.