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Treasury Yields Fall After Tame Inflation Reading

Susan Walsh | AFP | Getty Images
  • The U.S. consumer price index rose 0.3% in January while core CPI was unchanged.
  • Fed Chair Jerome Powell told the Economic Club of New York that the Fed will remain "patiently accommodative" while the economy recovers.

U.S. Treasury yields fell slightly on Wednesday morning after the Labor Department's January inflation report was in line with expectations.

The yield on the benchmark 10-year Treasury note fell three basis points to 1.126%, while the yield on the 30-year Treasury bond dropped to 1.915%. Yields move inversely to prices.

Treasury yields had ticked slightly higher on Wednesday morning before the inflation report. The U.S. consumer price index rose 0.3% in January while core CPI was unchanged. Economists surveyed by Dow Jones expected a rise of 0.3% for the main index and 0.1% for the core index.

Wholesale inventory data for December rose 0.3%, according to the Census Bureau, ahead of the 0.1% projected by economists surveyed by Dow Jones.

Meanwhile, the central bank's dovish stance appears no closer to chance. Fed Chair Jerome Powell told the Economic Club of New York that the Fed will remain "patiently accommodative" while the economy recovers.

Auctions were held Wednesday for $25 billion of 105-day bills, $30 billion of 154-day bills and $41 billion of 10-year notes.

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