U.S. inflation data awaits, causing mixed treasury yields among investors.

On Thursday, the U.S. 10-year Treasury remained unchanged, with investors focusing on the upcoming inflation report to be released on Friday.

The 10-year Treasury yield decreased slightly to 3.839%, while the 2-year Treasury yield increased by less than 1 basis point to 3.873%.

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

As economic data is released, the focus will shift to the U.S. Federal Reserve's preferred inflation measure on Friday.

On Thursday at 8:30 a.m. ET, the U.S. will release both the initial jobless claims data for the second quarter and the gross domestic product data for the same period. Following that, pending home sales figures for July will be made available later in the session.

The Federal Reserve officials use the PCE measure as their primary indicator of inflation. The release of U.S. personal consumption expenditures, or PCE, on the last trading day of August could provide more insights into the outlook for interest rates.

Jerome Powell, the Fed Chair, stated last week that "it's time for policy adjustments," increasing anticipations for a rate cut at the central bank's upcoming meeting. Despite this, Powell did not give specific details on the timing or magnitude of the cut.

The Fed's Sept. 18 meeting is expected to result in a rate cut, with traders pricing in a 65.5% chance of a 25-basis-point cut and a 34.5% chance of a 50-basis-point cut, according to the CME Group's FedWatch Tool.