Treasury yields follow oil prices higher as traders await latest jobs data

U.S. Treasury yields advanced on Wednesday, following oil prices higher, as traders await jobless claims data due later in the session.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was up more than 1 basis point to 4.675%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, rose more than 1 basis point to 4.317%. The longer-dated 30-year Treasury bond yield was higher by more than 1 basis point to 5.161%.

One basis point is equal to 0.01%, and yields and prices move inversely to each other.

Oil prices continued to climb on Thursday, with Brent crude futures surpassing $97, following reports of attacks on tankers off the coast of Saudi Arabia and the U.S. renewed threats to escalate strikes against Iran.

At 3:45 a.m. ET, Brent crude futures for July delivery gained 3.9% to $97.76 per barrel, marking their highest level since June 3. U.S. West Texas Intermediate crude futures advanced around 3% to $89.50 per barrel.

Government bond yields also moved higher across Asia and Europe on Thursday. The yield on the U.K. 10-year government bond rose 4 basis points to above 5% as new prime minister Andy Burnham cut property taxes on hospitality venues, contributing to investor unease.

Burnham's 20% cut on business rates will cost roughly £100 million ($134 million) and aims to protect pubs, clubs and music venues from higher costs. 

Weekly jobless claims will be released at 8:30 a.m. ET on Thursday, while investors will be looking ahead to the latest S&P Global Flash U.S. PMI report due Friday, which measures the economic health of American manufacturing and services sectors.  

— CNBC's Chloe Taylor also contributed to this report.