Treasury yields reach multi-year highs ahead of U.S. inflation data

Treasury yields hit multi-year highs on Thursday as traders await the release of U.S. wholesale inflation data later due later in the session.

The 10-year U.S. Treasury note yield — the key benchmark for mortgage borrowing, auto loans and credit card debt — was up more than 2 basis points at 4.867%. That's the highest level since November 2023.

The 2-year Treasury note yield, which is typically more sensitive to short-term Federal Reserve interest rate decisions, hit a high of 4.449%, or its best level going back to July 2024.

The longer-dated 30-year Treasury bond yield, which moves in line with broader geopolitical risks, was up more than 2 basis points at 5.315%.

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

U.S. yields increased on Wednesday, after Treasury Secretary Scott Bessent said the department will buy back $6 billion of longer-dated government bonds.

With the 10-year note yield touching its highest level since November 2023, investors are now looking ahead to key wholesale and consumer price data, due Thursday and Friday, respectively, for clearer insights into the U.S. inflation picture and next week's Federal Reserve interest rate decision.

The PPI print — a measure of wholesale goods and services — is expected to show a 5.4% year-over-year increase during August, according to FactSet consensus estimates. That follows a 4.7% increase in last month's report.

Elsewhere, renewed hostilities between the U.S. and Iran continued to push energy prices higher, fueling inflation concerns.

West Texas Intermediate futures were last seen 1.5% higher at $97.45 per barrel early Thursday. International benchmark brent crude rose 0.9% to $102.16.

President Donald Trump said that energy prices would come "tumbling downward" after the midterm elections, adding that the war in the Middle East would conclude "immediately after the election."