U.S. Treasury yields moved lower on Thursday as investors digested a cooler-than-expected inflation reading.
The 10-year Treasury yield declined 8.1 basis points to 4.447%, and the 2-year Treasury yield fell 9 basis points to 3.963%.
One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.
The decline in yields came as the April reading for the producer price index showed a surprising drop in wholesale prices. The PPI for final demand fell 0.5%. Economists surveyed by Dow Jones were expecting an increase of 0.3%.
Other economic data on Thursday, including initial jobless claims and retail sales, came in largely as expected.
Earlier this week, investors were buoyed by a tame inflation reading on Tuesday, with consumer prices rising at a slower pace than economists had expected. Inflation increased 0.2% in April, excluding food and energy, below the consensus forecast of 0.3%.
Optimism remains about the U.S. striking trade deals on tariffs with other countries, with the U.K. securing a trade agreement last week, and the U.S. and China pausing most tariffs for 90 days. U.S. levies on China previously stood at 145%, while China retaliated with tariffs of 125% on U.S. imports.
