HomeUSATreasury yields in focus after key inflation data

Treasury yields in focus after key inflation data

U.S. Treasury yields were mixed on Thursday as market participants assessed monetary policy expectations after a key report showed a slowdown in inflation.

The yield on the benchmark 10-year Treasury note dipped less than one basis points to trade at 2.775%. The yield on the 30-year Treasury bond was little changed at 3.038%. Yields move inversely to prices, and a basis point is equal to 0.01%.

The 2-year Treasury yield was more than 3 basis points lower at 3.181%, following a dramatic move in the previous session.

Data on Wednesday showed that U.S. consumer prices rose 8.5% year over year in July, slowing from the previous month in large part due to a drop in oil prices. Economists had expected an 8.7% annual climb.

The easing of inflation will inform the U.S. Federal Reserve’s monetary tightening trajectory ahead of its September meeting.

Investors on Thursday are turning their attention to fresh economic data and Treasury auctions.

The latest weekly initial jobless claims and the producer price index for July will both be released at 8:30 a.m. ET.

Meanwhile, the U.S. Treasury will auction $55 billion in 4-week bills, $50 billion in 8-week bills and $21 billion in 30-year bonds.

— CNBC’s Elliot Smith contributed to this report.

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