U.S. Treasury yields climbed early on Thursday, as investors braced themselves for key inflation data, due out later in the morning.
The yield on the benchmark 10-year Treasury note rose by 1 basis point to 1.9406% at 4:20 a.m. ET. The yield on the 30-year Treasury bond advanced by 1 basis point to 2.2465%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
January's consumer price index, a key measure of inflation, is due out at 8:30 a.m. ET on Thursday. The index is expected to show that prices grew by 0.4% on the previous month, and 7.2% year on year, which would be the highest increase since 1982.
Forecasts of hotter inflation readings have added to expectations around the Federal Reserve's plans to tighten monetary policy.
Atlanta Fed President Raphael Bostic told CNBC on Wednesday that he foresees three or four interest rate hikes in 2022. However, he added that the central bank would have to see "how the economy responds, as we take our first steps through the first part of this year."
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In light of concerns around inflation and policy tightening, Paul Jackson, global head of asset allocation research at Invesco, told CNBC's "Squawk Box Europe" on Thursday that he believed the 10-year Treasury yield could top 2.5% this year.
"Rising bond yields will penalize the S&P 500 more than many other major indices because of the concentration of growth stocks within that index," he said. Jackson predicted at the beginning of the year that the S&P 500 could close 2022 lower than it started.
Meanwhile, the number of jobless claims filed during the week ended Feb. 5 is also due to be released at 8:30 a.m. ET.
Auctions are scheduled to be held for $50 billion of 4-week bills, $40 billion of 8-week bills and $23 billion of 30-year bonds.