TREASURIES-US yields edge higher after hotter-than-expected producer prices data

March 18 (Reuters) - U.S. Treasury yields drifted higher on Wednesday after stronger-than-expected producer price data underscored persistent inflation pressures, bolstering expectations that the Federal Reserve will delay interest rate cuts.

The U.S. Producer Price Index for final demand surged 0.7% last month, lifted by services, after an unrevised 0.5% rise in January, data showed. Economists polled by Reuters had forecast the PPI rising 0.3%.

U.S. 10-year yields were last up 1 basis point (bp) at 4.212% US10YT=RR, while the two-year yields climbed 3.7 bps to 3.709% US2YT=RR.