Slight decline in treasury yields due to investor assessment of new inflation information.

On Thursday, U.S. Treasury yields were slightly lower due to investors' response to the latest economic information and their assessment of the future of interest rates.

The yield on the decreased by less than one basis point to 3.646%, while it was previously at 3.616%.

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

The producer price index, which measures inflation on a wholesale level, increased by 0.2% in August, in line with the predictions of economists surveyed by Dow Jones. Additionally, final demand prices excluding food, energy, and trade services rose by 0.3%, slightly higher than the anticipated 0.2%.

According to Dow Jones, economists predicted 225,000 initial jobless claims, but the actual data came in at 230,000.

On Thursday, the economic readings will be released, following the consumer price index on Wednesday that showed prices increased by 0.2% on a monthly basis, in line with expectations. However, core inflation, which excludes food and energy prices, came in slightly higher than anticipated from the previous month at 0.3% — above the forecast 0.2%.

Before the upcoming Federal Reserve meeting on September 17-18, it is predicted that the central bank will lower interest rates.

There is disagreement among traders regarding the size of the rate cut, with some advocating for a larger 50-basis-point reduction, while others believe this could pose a risk to markets and suggest a 25-basis-point cut would be more prudent.

This year, the European Central Bank has reduced its key rate by 25 basis points twice.