(Corrects year-over-year producer price information in fourth paragraph to 0.7 percent from 1.2 percent)
By Dion Rabouin
Oct 14 (Reuters) - U.S. Treasury prices eased modestly from their earlier gains after the release of U.S. retail sales and inflation data that came in largely at expected levels.
Treasury prices had sunk in overnight trading after stronger-than-expected Chinese inflation data eased concerns about sluggish growth from the world's second largest economy.
Benchmark 10-year Treasury prices were last down 9/32 in price to yield 1.769 percent. Thirty-year Treasury bond prices were down 27/32 to yield 2.518 percent.
U.S. retail sales rose 0.6 percent in September, meeting the expectations of economists polled by Reuters. U.S. producer prices edged up 0.3 percent month over month and 0.7 percent year over year in September, modestly outpacing economists' predictions. (Reporting by Dion Rabouin)