Treasury yields dip ahead of jobless claims and producer price data

  • July's producer price index is set to come out at 8:30 a.m. ET on Thursday.
  • The number of weekly jobless claims filed last week is also due to be released at 8:30 a.m. ET.

U.S. Treasury yields dipped on Thursday morning, ahead of the release of July's producer price index and weekly jobless claims data.

The yield on the benchmark 10-year Treasury note fell nearly 2 basis points to 1.341% at 4 a.m. ET. The yield on the 30-year Treasury bond dipped by 1 basis point to 1.991%. Yields move inversely to prices.

Treasurys

July's PPI is set to come out at 8:30 a.m. ET on Thursday. The index tracks the changes in prices companies get for the goods they produce and acts as a more indirect measure of inflation.

On Wednesday, the July consumer price index, which tracks the growth in prices that people pay for goods and services, showed that core inflation had risen 4.3% over the last year. This marked a slight slowdown in price growth from June's 4.5%.

Treasury yields fell following the release of the core CPI data, indicating that this had calmed investor concerns that inflationary pressures could persist and prompt the Federal Reserve to tighten monetary policy sooner than expected.

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In addition to persistently higher inflation, the Fed is also keeping an eye on the recovery in the labor market to gauge when it should start winding down its ultra-easy policy.

The number of weekly jobless claims filed last week is also due to be released at 8:30 a.m. ET on Thursday.

Auctions will be held on Thursday for $40 billion of 4-week bills, $35 billion of 8-week bills and $27 billion of 30-year bonds.

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