WASHINGTON (dpa-AFX) - Following the slight pullback seen in the previous session, treasuries saw further downside over the course of the trading day on Thursday.
Bond prices came under pressure early in the day and remained in negative territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 3.680 percent.
With the increase, the ten-year yield added to the uptick on Wednesday, climbing further off the one-year closing low set on Tuesday.
The continued pullback by treasuries came as the latest inflation data further reduced the chances of the Federal Reserve lowering interest rates by 50 basis points next week.
Early in the day, the Labor Department said its producer price index for final demand crept up by 0.2 percent in August, while revised data showed prices were unchanged in July.
Economists had expected producer prices to inch up by 0.1 percent, matching the uptick originally reported for the previous month.
At the same time, the report said the annual rate of producer price growth slowed to 1.7 percent in August from a downwardly revised 2.1 percent in July.
The year-over-year increase by producer prices was expected to decelerate to 1.8 percent from the 2.2 percent originally reported for the previous month.
A report on import and export prices may attract attention on Friday along with a report on consumer sentiment, which includes readings on inflation expectations.
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