investors weigh inflation expectations
At 6:14 a.m. ET, the yield on the 10-year Treasury was down by 1 basis point at 3.421%. The 2-year Treasury traded 1.5 basis points higher at 3.916%.
U.S. Treasury yields were mixed on Thursday as investors digested the latest consumer price index report and looked ahead to further inflation insights and key economic data.
Investors assessed the outlook for the U.S. economy and Federal Reserve monetary policy after April's CPI reading came in slightly lighter than expected on Wednesday. It rose 0.4% on a monthly basis, as expected by economists previously surveyed by Dow Jones, and 4.9% from a year ago, just below the 5% estimate.
April's producer price index report, which tracks wholesale inflation, is due Thursday alongside weekly initial jobless claims data.
The latest economic data is likely to affect the Fed's next policy moves and comes at a time when many investors are concerned about elevated interest rates dragging the U.S. economy into a recession.
The central bank indicated at its most recent rate-setting meeting last week, where it also hiked interest rates by 25 basis points, that it may halt its rate-hiking campaign soon. But New York Fed President John Williams suggested Tuesday that further rate increase are not off the table.
Also on Thursday, Fed Governor Christopher Waller is set to give remarks. Elsewhere, the Bank of England is expected to announce the 12th consecutive interest rate hike. As U.K. inflation has remained sticky, markets are pricing in a 25 basis point rate increase from the central bank.
Source: CNBC
