US Treasury futures fell to intraday lows after weekly initial jobless claims totaled 191,000, below economists' median forecast of 220,000 and hitting the lowest level in over three years. The prior reading was revised up by 2,000. Continuing claims also came in lower than expected, with the previous figure revised downward.

US Treasury yields rose 2-4 basis points, with intermediate maturities leading the decline. The spread between 5-year and 30-year yields remained near intraday lows. The 10-year yield briefly climbed 4.5 basis points to around 4.11%.

Pricing in the Fed's overnight index swap market held steady, reflecting about 22 basis points of rate cuts expected by the December 10 policy meeting, with a cumulative 30 basis points of easing priced in for the December and January FOMC meetings combined.