U.S. Treasury yields were higher on Thursday as investors reacted to the latest economic data and considered the outlook for interest rates.
The yield on the 10-year Treasury was up three basis points at 3.683%. The 2-year Treasury yield was last at 3.658% after adding about 1 basis point.
Yields and prices move in opposite directions. One basis point equals 0.01%.
On Thursday, the producer price index, which tracks inflation on a wholesale level, showed a rise of 0.2% in August. That matched expectations of economists surveyed by Dow Jones. Prices for final demand excluding food, energy and trade services rose 0.3%, slightly higher than the 0.2% expected.
Weekly initial jobless claims data came in at 230,000. Economists were expecting 225,000, according to Dow Jones.
Thursday's economic readings come after the consumer price index on Wednesday showed prices rose 0.2% on a monthly basis, in line with expectations. But core inflation, which excludes food and energy prices, came in slightly higher than expected from the previous month at 0.3%, above the forecast 0.2%.
That comes ahead of the next Federal Reserve meeting on Sept. 17-18, when the central bank is widely expected to cut interest rates.
Money Report
Traders are split on the extent to which the Fed will lower rates. Some are arguing in favor of a 50-basis-point reduction, while others say this could be risky for markets and that a 25-basis-point cut would be the better option.
Elsewhere, the European Central Bank cut its benchmark rate by 25 basis points, the second reduction of its key rate this year.
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