Treasuries fall as Greece stability signs reduce haven demand

More signs of U.S. labor-market strength weighed down Treasuries as the Labor Department reported the first decline in jobless claims in a month. New claims for unemployment benefits remained below 300,000 for the 19th straight week.

The Federal Reserve has pointed to an improving labor- market as it weighs whether the U.S. economy is strong enough to raise interest rates for the first time since 2006. Fed Chair Janet Yellen reiterated Wednesday the central bank will probably raise its main interest rate this year, while subsequent increases will be gradual.

"The clear message from Yellen that a rate hike is coming before year-end also underpinned Treasury yields," said Nick Stamenkovic, fixed-income strategist at RIA Capital Markets Ltd.

The 10-year note yield will rise to 2.60 percent by the end of the year, according to the median estimate in a Bloomberg survey of analysts.

U.S. debt securities maturing in 10 years and longer are down 4.8 percent this year, according to the Bloomberg U.S. Treasury Bond Index.