Consumer inflation figures do not affect treasury yields.

On Wednesday, U.S. Treasury yields remained relatively stable as investors evaluated the latest inflation information and its potential implications for the economy and monetary policy.

The yield on the decreased by less than one basis point to 3.8522% at 4:58 a.m. ET. The yield had previously been at 3.9496%, but it rose by less than one basis point.

An inverse relationship exists between yields and prices. A basis point is equivalent to 0.01%.

On Tuesday, treasury yields fell after the monthly producer price index rose by only 0.1% in July, instead of the predicted 0.2% increase.

The consumer price index is expected to increase by 0.2% monthly and 3% annually, according to a Dow Jones poll of economists. The wholesale inflation figure was released ahead of the CPI.

The anticipated increase in Core CPI, excluding food and energy prices, is projected to be 0.2% higher than the previous month and 3.2% higher than the same month a year ago.

Recent weeks have seen jitters among investors about the state of the economy, as fears of a recession intensified and questions arose about whether the Federal Reserve should have started cutting interest rates earlier.

Inflation figures will also be closely examined by investors for indications of the outlook for interest rates. While traders had previously predicted a 100% chance of a September rate cut, according to CME Group's FedWatch tool, they were divided on the size of the cut.

In July, the Fed decided to keep rates unchanged but hinted at a possible rate cut in September, contingent on the economy's progress.