TREASURIES-Yields drop after U.S. consumer price data

Kitco Media
By Reuters
Published:
Updated:
Reuters
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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