TREASURIES – US government debt yields fall amid slowing inflation

NEW YORK, Jan 12 (Reuters) – U.S. Treasury yields eased after a brief rise on Thursday after data showed an unexpected monthly decline in December consumer prices, confirming expectations of a further slowdown in the rate hike by the U.S. Federal Reserve.

The consumer price index fell 0.1% last month after rising 0.1% in November, the Labor Department said on Thursday. This is the first decline in US consumer inflation since May 2020, when the economy experienced the first wave of the coronavirus.

In the 12-month period to December, the CPI rose by 6.5%, showing the weakest annual growth since October 2021, while in November it was 7.1%.

The 10-year US Treasury yield fell 8.3 basis points to 3.474%.

Yields on two-year bonds fell 10.6 bp. up to 4.123%. Original message in English available at code (Gertrude Chavez-Dreyfus)

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