U.S. Treasury yields were higher on Thursday as investors weighed the latest inflation data and considered the outlook for interest rates.

At 4:49 a.m. ET, the yield on the 10-year Treasury was up by over two basis points to 3.6759%. The 2-year Treasury yield was last at 3.6683% after rising by more than two basis points.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Markets weighed August inflation prints, with the consumer price index on Wednesday showing that prices rose 0.2% on a monthly basis, in line with expectations. But core inflation, which excludes food and energy prices, came in slightly higher than expected from the previous month at 0.3% -- above the forecast 0.2%.

On Thursday, the producer price index, which tracks inflation on a wholesale level, is due. Economists surveyed by Dow Jones are expecting both the headline and core PPI to reflect a 0.2% increase on a monthly basis.

The latest weekly initial jobless claims data is also due Thursday. Claims are expected to have fallen to 225,000 from 227,000 in the previous week, according to Dow Jones.

That comes ahead of the next Federal Reserve meeting on September 17-18, when the central bank is widely expected to cut interest rates.

Traders are however split on how big the rate cut will be, with some arguing in favor of a bigger 50-basis-point cut, while others say this could be risky for markets and that a 25-basis-point cut would be the better option.

Elsewhere, the European Central Bank is set to announce its latest interest rate decision on Thursday. The ECB is expected to cut rates by 25 basis points, which would be the second reduction of its key rate this year.