U.S. Treasury yields were little changed on Thursday as investors awaited key data on wholesale prices.
At 6:50 a.m. ET, the benchmark 10-year Treasury yield rose nearly 2 basis points to 4.335%. The 2-year Treasury yield was down just under 1 basis point at 4.001%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors are looking to the producer price index reading for February on Thursday, which measures the cost of producing consumer goods and is a good indicator of inflationary pressures. It will be released by the Bureau of Labor Statistics at 8:30 a.m. ET.
Economists polled by Dow Jones expect PPI to have risen 0.3% month over month.
This follows the consumer price index report on Wednesday, which came in softer than expected at 0.2% on a monthly basis and 2.8% on an annual basis, showing that prices for goods and services moved up less than expected in February.
These results may have calmed investors’ concerns about the growth of the economy and the potential impacts that U.S. President Donald Trump’s tariffs may have on inflation.
Trump’s 25% tariff on steel and aluminum imports went into effect on Wednesday, to which Europe and Canada responded with their own retaliatory measures.
The combination of the latest inflation reading and Trump’s tariffs have investors questioning how the Federal Reserve will proceed with rate cuts at its next meeting on March 19 -20.
Correction: The February PPI report was slated for release at 8:30 a.m. ET. A previous version misstated the time.
