Bond prices steady, watch stocks

NEW YORK (CNNMoney.com) -- Treasury prices were little changed Thursday afternoon as bond investors looked to the stock market for direction and did not dwell on the morning's Producer Price Index report, which showed an unexpected spike in prices.

The benchmark 10-year note gained 1/32, or 31 cents for every $1,000 invested, to yield 4.54 percent, down slightly from late Wednesday.

The 30-year bond rose 4/32, or $1.25 for every $1,000 invested, to yield 4.69 percent, down from 4.70 percent in the previous session. Bond prices and yields move in opposite directions.

The five-year note was unchanged, yielding 4.46 percent, while the two-year was also unchanged, yielding 4.58 percent.

In economic news, Thursday morning's report showing a spike in the Producer Price Index made bond investors concerned about the potential for inflation.

The headline PPI reading, released a day prior to the government's release of the Consumer Price Index, showed a 1.3 percent increase in February, well above the median forecast of a 0.5 percent rise among economists polled by Reuters.

The PPI core rate, which excludes volatile energy and food prices, rose by 0.4 percent last month, twice the median forecast among economists surveyed.

In currency trading, the dollar was mixed against the euro and the yen.

The euro traded at $1.3234, up from $1.3220 late Wednesday, while the dollar stood at ¥117.62, up from ¥117.06 in the previous session.

-- from staff and wire reports

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