U.S. Treasurys gained on Thursday after inflation data came in as expected and amid strength in German government debt and overnight demand for safe-haven U.S. debt.
U.S. consumer prices rose by their most in six months in December but were in line with expectations, after producer price data on Wednesday surprised some investors by rising more than expected.
That eased some inflation concerns, after an unexpected drop in Australian employment boosted demand for Treasuries overnight and as German bunds also rallied.
"CPI come in at consensus the market is being dragged up because of the strength in bunds," said Thomas di Galoma, co-head of fixed-income rates at ED&F Man Capital in New York.
