U.S. inflation data assessed by traders causes Treasury yields to decrease.

On Wednesday, U.S. Treasury yields decreased due to investors considering the recently released U.S. inflation data.

The benchmark yield dropped by 0.003% to 2.701%, while the yield on the bond lost 0.002% to 2.808%. Yields move inversely with prices, and each basis point is equivalent to 0.01%.

The producer price index, which measures the prices paid by wholesalers, rose 11.2% year-over-year, the highest increase in the data series dating back to November 2010. Additionally, the gauge increased 1.4% on a monthly basis, surpassing the 1.1% Dow Jones forecast.

The March consumer price index, released on Tuesday, revealed that inflation rose to 8.5% last month, slightly above the forecasted 8.4% inflation, and marked the largest increase since 1981.

Core inflation for the month was 0.3%, below the estimated 0.5%, which led to the belief that it may have peaked.

Yesterday, markets opened with surprising strength, as stated by Daniel Lacalle, chief economist at Tressis Gestion, on CNBC's "Squawk Box Europe" on Wednesday.

With the realization that interest rate hikes would not suffice to control inflation, market sentiment began to decline, as Lacalle noted.

The conflict between Russia and Ukraine continues to be a major concern, with UK intelligence reporting that Russian forces are preparing for a larger and more focused effort to gain control in eastern Ukraine.

On Wednesday, $30 billion of 119-day bills and $20 billion of 30-year bonds were scheduled to be auctioned.

— bizfocushub.com staff contributed to this market report.