Renovation work continues on the Marriner S. Eccles Federal Reserve Board Building, the main offices of the Board of Governors of the Federal Reserve System in Washington, Dec. 9, 2025.
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Treasury yields dipped on Thursday as Wall Street digested even more U.S. inflation data.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell 2.6 basis points to 4.666%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, fell more than 3 basis points to 4.168%. The longer-dated 30-year Treasury bond yield dipped 1 basis point to 5.235%.
One basis point equals 0.01%, and yields and prices move inversely to one another.
The producer price index, which measures what wholesalers pay for raw goods and materials, was flat month over month in July. Economists polled by Dow Jones expected an increase of 0.2%.
“Net, net, pipeline pressures at the lower stages of production are not adding to the inflation risks the consumer faces,” said Chris Rupkey, FWDBONDS chief economist.
Thursday’s print follows a tame reading on consumer inflation, with the consumer price index coming in line with economist expectations.
“The war on inflation has not been won but the choices the Administration’s economics team, and the central bank need to make on just how to deal with elevated consumer inflation will not need to be hurried,” Rupkey added. “The energy price shock from the war in Iran is not pushing up the prices of other goods and services at the moment.”
Traders looked through both reports for clues on whether the Federal Reserve will raise rates next month, or keep policy steady. Fed funds futures trading is currently betting that the central bank will hold next month, pricing in a roughly 68% chance, per the CME Group FedWatch tool.
— CNBC’s Fred Imbert also contributed to this report.