The 10-year U.S. Treasury yield hit 1.75%, after an inflation report showed that consumer prices rose at their fastest pace since 1982 in the year to December.
The yield on the benchmark 10-year Treasury note rose by 2 basis points to 1.746% at 7:30 a.m. ET. The yield on the 30-year Treasury bond climbed nearly 2 basis points to 2.089%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
The December producer price index, a gauge of inflation, is due to be released at 8:30 a.m. ET on Thursday. It will be the second major piece of inflation data this week.
The consumer price index, released Wednesday, grew by 7% in the 12 months to December. On a monthly basis, CPI increased 0.5%. Economists expected the consumer price index to rise 0.4% in December, and 7% on a year-over-year basis, according to Dow Jones.
Yields moved lower on Wednesday despite the hot CPI reading. The 10-year yield jumped sharply the previous week before pulling back slightly in the last two sessions, suggesting that high inflation numbers were already priced in to the market.
The number of jobless claims filed during the week ended Jan. 8 is also due out at 8:30 a.m. ET. Economists polled by Dow Jones forecast that 200,000 people filed for unemployment, down from the previous week’s 207,000.
Meanwhile, Federal Reserve Governor Lael Brainard is due to testify before the U.S. Senate for her nomination hearing to the role of the central bank’s vice chair.
Auctions are scheduled to be held for $50 billion of 4-week bills, $40 billion of 8-week bills and $22 billion of 30-year bonds.
— CNBC’s Maggie Fitzgerald contributed to this market report.
