US Treasury bond prices rallied Wednesday after soft inflation data indicated investors will have to wait longer for the surge in consumer prices many expected this year.
The yield on the 10-year US Treasury bill came in at 1.133%, down from 1.174% before the data was released and 1.156% Tuesday, according to Tradeweb.
Yields, which fall when bond prices rise, have fallen after the Department of Labor said core consumer prices, excluding the often volatile food and energy categories, were unchanged in January from the previous month. Core prices were also flat in December following a downward revision of the earlier estimate.
Economists polled by The Wall Street Journal had expected core prices to rise by 0.1% in January.
Overall, the data indicates that “there are simply no really significant underlying inflationary pressures,” said Thomas Simons, senior vice president and money market economist in the fixed income group at Jefferies LLC.