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Treasury yields end flat as CPI matches forecasts

The 10-year yield held near the 4.70% area after bonds reversed optimism when CPI came in line with expectations.

Reported · Written up by our desk · Government Bonds

Mortgage News Daily said Treasury trading ended largely unchanged after an early period of relatively favorable pricing ahead of the CPI release.

The outlet said bonds had been moving somewhat more optimistically overnight, including outperforming their usual relationship with oil prices, but that momentum faded immediately once CPI was released.

It cited the possibility that traders had positioned for bond buying before the report, reflecting an asymmetric risk view ahead of inflation data.

By the end of the session, yields had drifted back toward unchanged levels, with the 10-year yield still working to defend longer-term ceilings around 4.70%.

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