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U.S. government bond prices surged on Wednesday after weak inflation data indicated that investors will have to wait longer for the sharp rise in consumer prices many expected this year.
The yield on the benchmark 10-year US Treasury bill stood at 1.133%, according to Tradeweb, from 1.174% before the data was released and 1.156% on Tuesday.
Yields, which fall when bond prices rise, fell after the Labor Department said basic consumer prices, excluding often volatile food and energy categories, were unchanged in January from in the previous month. Base prices were also stable in December after a downward revision to the previous estimate.
Economists polled by the Wall Street Journal had expected a 0.1% increase in base prices in January.
Overall, the data indicates that “there is simply no significant underlying inflationary pressure,” said Thomas Simons, senior vice president and money market economist in the fixed income group. of Jefferies LLC.
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