U.S. Treasury yields were little changed on Thursday morning, ahead of the release of July’s producer price index and weekly jobless claims data.
The yield on the benchmark 10-year Treasury note were mostly flat at 1.361% at 7:56 a.m. ET. The yield on the 30-year Treasury bond were little changed at 2.011%. Yields move inversely to prices.
July’s PPI is set to come out at 8:30 a.m. ET on Thursday. The index tracks the changes in prices companies get for the goods they produce and acts as a more indirect measure of inflation.
On Wednesday, the July consumer price index, which tracks the growth in prices that people pay for goods and services, showed that core inflation had risen 4.3% over the last year. This marked a slight slowdown in price growth from June’s 4.5%.
Treasury yields fell following the release of the core CPI data, suggesting the numbers eased concerns that inflationary pressures could persist and prompt the Federal Reserve to tighten monetary policy sooner than expected.
In addition to persistently higher inflation, the Fed is also keeping an eye on the recovery in the labor market to gauge when it should start winding down its ultra-easy policy.
The number of weekly jobless claims filed last week is also due to be released at 8:30 a.m. ET on Thursday.
