* Treasury yields fall, oil slips
* U.S. stocks higher in early trading (Updates with U.S. market openings, changes dateline, previous LONDON)
By Caroline Valetkevitch
NEW YORK, May 14 (Reuters) - The U.S. dollar was near its lowest since January against a currency basket on Thursday after a lower-than-expected reading of U.S. producer price inflation, while global stock markets rose.
U.S. Treasury yields fell as some corporate debt issuance that has weighed on the market passed. German government bonds held relatively steady, after a dramatic two-and-a-half week selloff.
U.S. and German bond yields, at their highest in months, have made equities look more expensive in comparison to debt and kept global equity markets subdued.
A report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating the U.S. jobs market was on a better footing, though other data showed a strong dollar and lower oil prices suppressed producer price inflation in April.
That suggests the Federal Reserve will probably not raise interest rates until later in the year.
“People are pretty focused on the weak numbers for the U.S.,” said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut. “People are increasingly wondering if the Fed is going to be ready to begin raising rates in September.”
With a rise in U.S. interest rates seeming more distant, investors bailed out of long dollar positions.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.3 percent.
MSCI’s all-country world index of the stock market performance in 46 countries was up 0.5 percent.
Wall Street gained on the data showing weekly jobless claims fell and as the dollar slid to its lowest in months, offering respite to U.S. multinationals.
The Dow Jones industrial average rose 153.29 points, or 0.85 percent, to 18,213.78, the S&P 500 gained 14.65 points, or 0.7 percent, to 2,113.13 and the Nasdaq Composite added 41.07 points, or 0.82 percent, to 5,022.76.
Benchmark 10-year note yields fell to 2.23 percent from 2.27 percent late on Wednesday.
Investors were keeping a close eye on developments in Greece.
Finance Minister Yanis Varoufakis said on Thursday Greece’s debt was not viable and repayments to the European Central Bank should be pushed back.
In commodity markets, oil slipped back below $67 a barrel as a market torn between a U.S. stock draw and a global glut of crude struggled for direction. U.S. crude futures were down 47 cents at $60.03 a barrel, while Brent was down 6 cents at $66.75. (Additional reporting by Sam Forgione in New York, Jamie McGeever in London and Sudip Kar-Gupta; Editing by Bernadette Baum)