The U.S. Dollar Index steadied around 99.9 after July U.S. consumer inflation slowed to 3.4% year on year from 3.5% in June and rose 0.1% month on month, while core CPI eased to 2.5% from 2.6%. Traders cut the implied probability of a 25 basis point Federal Reserve rate hike in September to about 40% from nearly 50% a day earlier, helping push the 10-year U.S. Treasury yield down 1.4 basis points to 4.680%, while Germany's 10-year Bund yield rose 0.5 basis points to 3.162% as fading hopes for a U.S.-Iran agreement kept inflation and supply-chain risks in focus. Investors turned to U.S. producer price data due at 1230 GMT for clues on the PCE index, the Fed's preferred inflation gauge, while also monitoring strong demand at a 10-year Treasury auction, possible yen support near 160 per dollar, Asian currency moves and tensions around the Strait of Hormuz.