By Karen Brettell
NEW YORK, May 10 (Reuters) - U.S. Treasury yields fell
after data on Wednesday showed that headline consumer prices
rose at an annual rate of 4.9% in April, slightly below
economists' expectations, while core prices increased by 5.5% as
expected.
Benchmark 10-year note yields fell around 6
basis points to 3.454%, while two-year yields dropped
around 11 basis points to 3.960%. The inversion in the yield
curve between two-year and 10-year notes narrowed
to minus 50 basis points.
Fed funds futures traders are currently pricing in an 86%
likelihood that the Federal Reserve will leave rates unchanged
at its June meeting, and 14% odds of an additional 25 basis
points hike. (Reporting by Karen Brettell; Editing by Andrew Heavens)
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