According to Odaily Planet Daily, U.S. Treasury prices fell after stronger-than-expected producer price index data earlier this month prompted traders to reduce their bets on a Federal Reserve interest rate cut next month. The two-year Treasury yield—the most sensitive to monetary policy shifts—erased earlier losses in early New York trading, rising 2 basis points to 3.69%. The dollar strengthened against a basket of currencies. According to a report released Thursday by the U.S. Bureau of Labor Statistics, the producer price index rose 0.9% month-over-month, following a flat month-over-month increase in June. Following the report, the swaps market is pricing in a 90% probability of a rate cut at the Fed's September meeting. A day earlier, the market had fully priced in this scenario.