Treasury yields slide as investors await Fed's preferred inflation gauge

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

At 5:12 a.m. ET, the 10-year Treasury yield dipped over 1 basis point to 4.358%. The 2-year yield was little changed at 3.93%, and the 30-year bond yield shed over 3 basis points to 4.88%.

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

Investors are keenly awaiting the Fed's favored inflation print on Thursday, due to be released at 8:30 a.m. ET, and will offer fresh insights into the impacts of tariffs on the economy. Economists polled by Dow Jones forecast headline PCE rising 2.5% on a yearly basis and 0.3% on a monthly basis.

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.