US Treasuries held their gains during light afternoon trading.
Earlier, a 7-year note auction performed solidly, with the winning yield matching the pre-issue trading yield.
Buying on the day was concentrated in the front end and belly of the yield curve, extending Wednesday's sharp curve-steepening move.
Corporate bond issuance was substantial, with Microsoft's large debt sale drawing strong demand, with subscription volumes at one point exceeding $115 billion.
The deal is expected to raise at least $25 billion across 10 maturity tranches.
Shortly after 3:00 PM Eastern Time, front-end yields had fallen by as much as 5 basis points, while long-end yields dropped about 2 to 3 basis points, with the 2-year/10-year and 5-year/30-year spreads widening by 1.5 basis points and 2 basis points on the day, respectively.
The US 10-year Treasury yield closed at around 4.98%, near the middle of the day's trading range.
Declines in US stocks also provided support for Treasuries.
Several technology companies were sold off, dragging down the Nasdaq index.
Alphabet Inc., Google's parent company, plunged a record 13%, once again raising market doubts about AI-related trades; Amazon and Intel reported earnings after the close.
The $44 billion 7-year note auction had a winning yield of 4.894%, in line with the pre-issue trading yield.
Market price reaction following the auction was limited.
In terms of bidding data, primary dealers were allotted 9.4%, the lowest since December last year; indirect bidders' allotment rose to 57.8%; direct bidders received 32.8%, among the highest levels on record.
In addition to Microsoft's bond sale, several overseas banks also conducted bond issuance, bringing total bond issuance on Thursday to nearly $37 billion.
HSBC, Royal Bank of Canada, and Barclays together issued $10.3 billion in bonds.
Weaker oil prices also provided support for US Treasuries on the day, as investors assessed the latest diplomatic efforts in the Middle East.
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