U.S. Treasury yields moved lower on Thursday as investors awaited a batch of economic data and more insights on inflation amid a U.S.-China trade agreement.
At 4:34 a.m. ET, the 10-year Treasury yield declined by just over one basis point to one basis points to 4.5%, and the 2-year Treasury yield fell by more than 2 basis points to 4.032%.
One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.
Investors are anticipating a series of economic data on Thursday, which will offer more insights into the state of the U.S. economy after U.S. President Donald Trump introduced “reciprocal” tariffs in April.
Investors were buoyed by a tame inflation reading on Tuesday, with consumer prices rising at a slower pace than economists had expected. Inflation increased by 0.2% in April, excluding food and energy, below the consensus forecast of 0.3%.
The producer price index, another inflation measure, will be published on Thursday at 8:30 a.m. ET. Investors will also look to retail sales data and industrial production numbers for April. Weekly jobless claims are also due.
Optimism remains about the U.S. striking trade deals on tariffs with other countries, with the U.K. securing a trade agreement last week, and the U.S. and China pausing most tariffs for 90 days. U.S. levies on China previously stood at 145%, while China retaliated with tariffs of 125% on U.S. imports.
