After ending the previous session roughly flat, treasuries saw considerable volatility over the course of the trading day on Thursday.
Bond prices fluctuated as the day progressed before closing in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.1 basis points to 3.493 percent.
The lower close by treasuries came following the release of some upbeat U.S. economic data, including a Commerce Department report showing U.S. economic activity surged by more than expected in the fourth quarter of 2022.
The report said real gross domestic product shot up by 2.9 percent in the fourth quarter after spiking by 3.2 percent in the third quarter. Economists had expected GDP to jump by 2.6 percent.
The stronger than expected GDP growth reflected increases in private inventory investment, consumer spending, government spending, and non-residential fixed investment.
Meanwhile, the positive contributions were partly offset by decreases in residential fixed investment and exports.
The Labor Department also released a report showing initial jobless claims unexpectedly dipped to a nine-month low in the week ended January 21st.
Separate Commerce Department reports also showed a spike in durable goods orders and a continued increase in new home sales.
Traders largely shrugged off the results of this month's auction of $35 billion worth of seven-year notes on Thursday, which attracted above average demand.
The seven-year note auction drew a high yield of 3.517 percent and a bid-to-cover ratio of 2.69, while the ten previous seven-year note auctions had an average bid-to-cover ratio of 2.51.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Earlier this week, the Treasury revealed this month's auctions of $42 billion worth of two-year notes and $43 billion worth of five-year notes also attracted well above average demand.
Trading on Friday may be impacted by reaction to a report on personal income and spending, which includes a reading on inflation said to be preferred by the Federal Reserve.