U.S. Treasury yields fell on Thursday following a sell-off amid inflation fears.

The yield on the benchmark 10-year Treasury note slid 4 basis points 1.499%. The yield on the 30-year Treasury bond dipped about 3 basis points to 2.058%. Yields move inversely to prices, and a basis point is equal to 0.01%.

The 10-year Treasury yield hit 1.567% on Tuesday, with investors concerned about a longer lasting rise in prices and the prospect of tighter monetary policy.

"The market is doing a reset here on inflation expectations. I think that you're starting to see that there's this nervousness that the Fed is going to have to accelerate their timetable not just on tapering but also on interest rate hikes," said Ed Moya, senior market analyst at Oanda.

Even with Thursday's decline, the 10-year Treasury yield is up roughly 20 basis points from where it traded at the end of August.

Federal Reserve Chairman Jerome Powell warned again during a Congressional hearing on Thursday that inflation pressures from the pandemic could last longer than previously expected, though he said he still believes they will be temporary. At the same hearing, Treasury Secretary Janet Yellen again called for Congress to raise the debt ceiling, saying the results would be "catastrophic" if legislators failed to Act.

On Wednesday, the House passed a bill that would suspend the U.S. debt ceiling, but the measure is not expected to pass the Senate. Congress did pass a bill on Thursday that would fund the government through early December, but legislators still need to address the debt ceiling.

On the data front, weekly jobless claims totaled 362,000 during the week ended Sept. 25. Economists had forecast that 335,000 unemployment insurance claims were filed last week.

Auctions were held on Thursday for $10 billion of four-week bills and $25 billion of eight-week bills.

— CNBC's Jeff Cox and Pippa Stevens contributed to this market report.