TREASURIES-US yields briefly pare decline after inflation data

NEW YORK, July 31 (Reuters) - U.S. Treasury yields briefly pared declines on Thursday in choppy trading after the Federal Reserve's preferred gauge of inflation came in slightly higher than expected in June, supporting the central bank's patient stance in cutting interest rates.

U.S. jobless claims were also better than forecast, suggesting that the labor market was not falling off a cliff.

Moves in Treasuries, however, were short-lived. U.S. 10-year yields have now extended their fall, last down 3.6 bps at 4.342% US10YT=RR.