As investors consider inflation data, treasury yields increase.

On Thursday, U.S. Treasury yields rose slightly as investors processed the latest inflation data and anticipated additional important economic information.

Nearly one basis point higher, the yield on the yield was 3.8314% at 3:46 a.m. ET. The yield was previously 3.9594%, more than one basis point higher.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

This week's inflation data bolstered investor confidence that the Federal Reserve would cut interest rates in September.

In July, the consumer price index increased by 0.2% on a monthly basis and 2.9% from a year earlier, according to data released on Wednesday. While the monthly reading was in line with economists' forecasts, the annual rate was slightly below the anticipated 3% increase.

The core CPI, excluding food and energy costs, increased by 0.2% from the previous month and 3.2% year-over-year, as anticipated.

On Tuesday, the producer price index, which monitors wholesale prices, showed a 0.1% increase in July compared to the previous month, although this was lower than what was predicted.

Expectations of a September interest rate cut are being fueled by data, which is widely priced in by markets. This would see the Fed join its counterparts in the euro zone and U.K., where central banks have already begun cutting interest rates.

Retail sales data due on Thursday could provide insights into the economy and consumer behavior, amid concerns about a potential recession and slowing economic growth in the U.S.