NEW YORK, Aug 10 (Reuters) - U.S. Treasury yields slipped on Thursday after U.S. data showed the biggest drop in producer prices in 11 months and an unexpected rise in weekly jobless claims, further reducing expectations of an interest rate hike in December.
In early morning trading, U.S. 10-year yields slipped to 2.230 percent after the data, from 2.237 percent just before. U.S. 30-year bond yields also fell to 2.810 percent , from 2.818 percent before the numbers' release.
Data showed that the U.S. producer price index for final demand slipped 0.1 percent last month, reversing June's 0.1 percent gain. July's drop was the largest since August 2016.
U.S. jobless claims were no better, rising 3,000 to a seasonally adjusted 244,000 for the week ended Aug. 5. Data for the prior week was revised to show 1,000 more applications received than previously reported. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)