Traders work on the floor of the New York Stock Exchange on Feb. 13, 2025.
U.S. Treasury yields slipped on Thursday as investors digested key data on wholesale prices.
The benchmark 10-year Treasury yield was more than 4 basis points lower at 4.272%. The 2-year Treasury yield fell nearly 5 basis points to 3.947%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
The producer price index was unchanged in February, while economists polled by Dow Jones expected a 0.3% month-over-month increase.
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This follows the consumer price index report on Wednesday, which came in softer than expected at 0.2% on a monthly basis and 2.8% on an annual basis, showing that prices for goods and services moved up less than expected in February.
These results may have calmed investors' concerns about the growth of the economy and the potential impacts that U.S. President Donald Trump's tariffs may have on inflation. However, questions still remain how the Federal Reserve will proceed on interest rates this year.
"The Fed is sort of still out there, waiting in the wings," said Jed Ellerbroek, portfolio manager at Argent Capital Management. "I think the Fed would like for rates to be lower, and the economy would like for rates to be lower ... but we're not seeing body language from the Fed that's saying they're imminently going to get off the pause button here."
Money Report
The U.S. trade war intensified on Thursday, after President Donald Trump threatened on Truth Social to levy 200% tariffs tariffs on all alcoholic products coming from countries in the European Union in retaliation for the bloc's 50% tariff on whisky. "This will be great for the Wine and Champagne businesses in the U.S.," he wrote.
The same day, Treasury Secretary Scott Bessent said on CNBC's "Squawk on the Street" that the Trump administration is more focused on the long-term health of the economy and markets, rather than short-term uncertainty. "I'm not concerned about a little bit of volatility over three weeks," he said.
Correction: The February PPI report was slated for release at 8:30 a.m. ET. A previous version misstated the time.
