U.S. Treasury yields were mixed on Thursday after January's wholesale prices report showed higher-than-expected inflation.
The yield on the 10-year Treasury was trading at 3.855%, up about 4.8 basis points for the day. The 2-year Treasury yield rose nearly one basis point to 4.638%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
The producer price index showed an increase of 0.7% in January, above the 0.4% expected. The report was followed by hawkish comments from Cleveland Fed President Loretta Mester. The 2 and 10-year yields were lower prior to the data release.
Other economic reports Thursday showed a smaller than expected number of weekly jobless claims and a steep decline for the Philly Fed economic index.
Treasurys
The January PPI report is a reversal from December, when the PPI declined by 0.5%, leading many investors to believe that inflation was easing.
On Tuesday, the consumer price index report for January showed that consumer inflation increased by 0.5% throughout the month.
In recent weeks, various Fed officials, including Chairman Jerome Powell, have indicated that the central bank will base future policy decisions on economic data. That includes whether there will be further interest rate hikes and how big they will be.
The Fed has implemented eight rate increases since March 2022 in an effort to slow the economy and bring inflation down. Concerns about rates being hiked too high, too quickly and whether that would lead to a recession have spread among investors.