U.S. Treasury yields were little changed after May producer prices rose less than expected, adding to evidence that inflation is cooling without prompting a major repricing in bond markets. The Labor Department said the Producer Price Index (PPI) increased 0.1% from April, below a 0.3% forecast, while annual wholesale inflation slowed to 2.2% from 2.3% and core PPI was flat. The 10-year Treasury yield held around 4.42% and the policy-sensitive 2-year hovered near 4.76%, while CME Group's FedWatch tool showed futures traders pricing roughly a 61% chance of a Federal Reserve rate cut at the September meeting, up from 55% a week earlier, along with a cumulative 50 basis points of easing by the end of 2026. Investors are now focused on next week's Fed meeting, Chair Jerome Powell's remarks and the Consumer Price Index later this month for confirmation that inflation is moving back toward the Fed's 2% target.