NEW YORK, May 23 (Reuters) - U.S. Treasury yields pulled

back from their lows on Thursday after data showed initial

jobless claims fell in the latest week, suggesting persistent

strength in the labor market that reinforces expectations the

Federal Reserve will take its time cutting interest rates this

year.

Initial claims for state unemployment benefits dropped

8,000 to a seasonally-adjusted 215,000 for the week ended May

18, the Labor Department said. Economists polled by Reuters had

forecast 220,000 claims in the latest week.

The benchmark U.S. 10-year yield was still slightly down at

4.431%.

The U.S. two-year yield, which reflects rate move

expectations, turned higher to 4.883%.