U.S. Treasury yields were slightly higher on Thursday as investors digested the latest inflation figures and looked to further key economic data.
At 3:46 a.m. ET, the yield on the 10-year Treasury yield was up by nearly one basis point to 3.8314%. The 2-year Treasury yield was last more than one basis point higher to 3.9594%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors weighed this week’s inflation data, which boosted investor confidence about a September interest rate cut from the Federal Reserve.
The consumer price index rose 0.2% on a monthly basis and 2.9% from a year earlier in July, data released on Wednesday showed. The monthly reading was in line with forecasts from economists polled by Dow Jones, while the annual rate was slightly below than the expected 3% increase.
Core CPI, which strips out food and energy prices, was 0.2% higher from the previous month and rose 3.2% on an annual basis, also as expected.
That came after the producer price index, which tracks wholesale prices, on Tuesday reflected a 0.1% increase in July from the previous month, which was less than forecast.
The data fueled expectations of a September interest rate cut, which is being widely priced in by markets and would see the Fed join its counterparts in the euro zone and U.K., where central banks have already begun cutting interest rates.
Investors also looked to retail sales data due on Thursday, which could provide hints about the state of the economy and how consumers are faring. That comes amid concerns about whether a recession is looming and economic growth is slowing in the U.S.
