U.S. government debt yields rose Thursday morning after the Department of Labor reported that consumer prices barely rose in June, though the underlying trend continued to suggest a steady uptick of inflation.
The government said Thursday that its Consumer Price Index inched up 0.1 percent as gasoline price increases cooled off and apparel prices slipped; Wall Street was expecting a print of 0.2 percent.
In the 12 months through June, the CPI increase 2.9 percent, the biggest gain since February 2012. So-called Core CPI, which excludes volatile food and energy components, rose 0.2 percent, matching its gain in May; the annualized increase in core CPI rose to 2.3 percent.
Elsewhere, in oil markets, Brent crude traded at around $74.90 a barrel on Thursday morning, up 2 percent, while U.S. crude stood at $70.96 a barrel, up 0.84 percent.
Oil markets recovered some ground following sharp losses in the previous session after Libya said it would resume exports. The rally received an extra boost Thursday morning when the International Energy Agency (IEA) warned the world’s spare oil capacity could soon be “stretched to the limit.”