The 10-year US Treasury yield fell to 4.66% on Thursday, extending its pullback from 4.75% touched two sessions earlier after July producer price data came in softer than expected. Producer prices were flat on the month, missing forecasts for a 0.2% increase and echoing the previous session’s subdued consumer inflation reading, strengthening the view that current inflation does not justify a Federal Reserve rate hike next month. Even so, the decline in yields was more limited at the long end of the curve because investors continued to weigh near-term inflation risks tied to energy supply. Pressure also came from the weakening Japanese yen, which raised concerns that Japan, the largest foreign holder of US Treasury notes, could trigger selling if authorities intervene in the foreign exchange market. Those worries showed up in the latest 10-year note auction, which recorded a tail (auction yield above expected level).