US treasury yields retreat following PPI data

US Treasury yields declined today, July 16, after the release of producer price index (PPI) data, though long-term yields remained above the 5% mark.

The two-year yield dropped 5.9 basis points to 3.90% as of 6:06 p.m. Makkah time. The 10-year yield slipped 4 basis points to 4.449%, while the 30-year yield eased 1.6 basis points to 5.002%.

On Tuesday, the 30-year yield breached 5% for the first time since early June. The rise triggered heavy options flows, with traders spending about $10 million on related bets.

Options traders are targeting a 30-year yield of around 5.3% in roughly five weeks, a level last seen in 2007.

US Labor Department data showed the Producer Price Index rose 2.3% year-on-year (YoY) in June, down from 2.7% in May.