10-year Treasury yields fell 3 basis points to 4.543% and MBS rose 11 ticks, or 0.34 point, leaving bonds near their best levels of the day.
Oil prices again appeared to drive the move, with traders seeing little bond-specific catalyst and describing the market as largely on auto-pilot amid renewed U.S.-Iran tensions.
The rally also reinforced a rejection of the recent technical breakout above 4.59% in the 10-year yield, though analysts stopped short of calling it a durable shift.
Jobless claims came in at 215,000 versus a 218,000 forecast, but the data had little visible impact compared with the oil-bond correlation that has reemerged since June.