According to the data, the US recorded an annual PPI rate of 2.4% in August, higher than market expectations of 5.3%, while the monthly core PPI rate in August recorded 0.2%, lower than market expectations of 0.3%. This sent mixed signals as Federal Reserve officials debated whether to raise interest rates next week. After the PPI data was released, the market fully anticipated that the Federal Reserve would raise interest rates in October. The PPI report was released the day before the latest CPI data, which is expected to show that so-called core inflation is relatively moderate. Some Federal Reserve officials have hinted that interest rate decisions for the September 15-16 meeting may depend on what this week's report reveals. Federal Reserve Chairman Walsh said in a speech last month that the Federal Reserve “still has work to do” if policymakers are unsure that potential inflation trends are improving significantly. As hostilities between the US and Iran continue, another rise in oil prices may further complicate the outlook. After the data was released, US Treasury yields rose, and 10-year Treasury yields rose 5.63 basis points to 4.893%. The 2-year US Treasury yield rose 5.96 basis points to 4.487%. The US 30-year Treasury yield rose to 5.3381%, the highest level since 2007.

According to the data, the US recorded an annual PPI rate of 2.4% in August, higher than market expectations of 5.3%, while the monthly core PPI rate in August recorded 0.2%, lower than market expectations of 0.3%. This sent mixed signals as Federal Reserve officials debated whether to raise interest rates next week. After the PPI data was released, the market fully anticipated that the Federal Reserve would raise interest rates in October. The PPI report was released the day before the latest CPI data, which is expected to show that so-called core inflation is relatively moderate. Some Federal Reserve officials have hinted that interest rate decisions for the September 15-16 meeting may depend on what this week's report reveals. Federal Reserve Chairman Walsh said in a speech last month that the Federal Reserve “still has work to do” if policymakers are unsure that potential inflation trends are improving significantly. As hostilities between the US and Iran continue, another rise in oil prices may further complicate the outlook. After the data was released, US Treasury yields rose, and 10-year Treasury yields rose 5.63 basis points to 4.893%. The 2-year US Treasury yield rose 5.96 basis points to 4.487%. The US 30-year Treasury yield rose to 5.3381%, the highest level since 2007.