U.S. Treasury yields were mixed Thursday as investors weighed the latest inflation data and its implications for the Federal Reserve's monetary policy.
As of 4:46 a.m. ET, the 10-year Treasury yield fell more than 1 basis point to 4.3380%. The two-year bond yield was last up less than 1 basis point at 4.7382%.
Yields and prices move in opposite directions, with 1 basis point equaling 0.01%.
Investors were hoping for new clues about the future direction of the Federal Reserve's monetary policy as they digested the latest inflation data.
The consumer price index for April, released on Wednesday, rose 0.3% from the previous month, slightly below the 0.4% forecast by economists compiled by Dow Jones. On an annual basis, CPI rose by 3.4%, as expected.
The monthly decline was welcomed by investors who had been hopeful that data showed inflation was cooling and could move closer to the Fed's 2% target range in the coming months. This could mean that the central bank will cut interest rates.
Policymakers have said they will only cut interest rates if data shows inflation pressures are falling sustainably. Federal Reserve Chairman Jerome Powell said earlier this week that the central bank needs to be patient as inflation remains higher than expected.
Powell's comments came after the producer price index, which measures wholesale prices, rose more than expected on Tuesday, reflecting a 0.5% monthly increase in April.
On Thursday, investors will focus on the latest housing sector data, including April building permits and housing starts. More Fed officials are expected to speak later in the week.