Treasury yields slip as traders weigh new U.S. inflation data

U.S. Treasury yields were lower on Thursday as investors parsed the personal consumption expenditures index for June — the Federal Reserve's preferred inflation gauge.

The 10-year Treasury yield dipped 4 basis point to 4.338%. The 2-year yield was marginally lower at 3.928%, and the 30-year bond yield shed over 4 basis points to 4.868%.

One basis point is equal to 0.01% and yields and prices move in opposite directions.

Investors were closely parsing the Fed's favored inflation print, the personal consumption expenditures price index, on Thursday. Headline PCE advanced 2.6% on a 12-month basis, above the forecast 2.5% from economists polled by Dow Jones.

That comes after the Fed held rates steady at a range of between 4.25% and 4.5%, in a widely expected move on Wednesday. However, not all Fed members were happy with the decision. Fed officials Michelle Bowman and Christopher Waller disagreed with the move to keep the interest rate unchanged.

Fed Chair Jerome Powell said policymakers will wait to make sure the tariffs don't turn into “serious inflation” at his press conference after the meeting.

“We have made no decisions about September,” Powell said regarding the next rate decision. “We don't do that in advance.”

He added: “We'll be taking that information into consideration and all the other information we get as we make our decision.”

On the tariff front, investors are watching as the Aug. 1 deadline approaches, which is when President Donald Trump's reciprocal tariff pause will end. The U.S. has only made eight deals in 120 days.

Weekly jobless claims are also due on Thursday.