TREASURIES-U.S. yields hold at lower levels as PPI data disappoint

NEW YORK, Aug 9 (Reuters) - U.S. Treasury yields stayed near their session lows on Thursday as data showed domestic producer prices were unchanged in July, falling short of a modest increase forecast among analysts and supporting traders' view that inflation would remain tame.

At 8:37 a.m. (1237 GMT), benchmark 10-year Treasury yield was down nearly 2 basis points at 2.949 percent, while 30-year yield was 3.103 percent, down over 1 basis point from late on Wednesday. (Reporting by Richard Leong Editing by Frances Kerry)