US shorter-dated yields hit session highs after CPI

NEW YORK: Yields on US short-to-medium Treasury debt maturities rose to session highs on Tuesday as in-line data on domestic consumer prices support expectations the Federal Reserve would raise interest rates in December.

The U.S. Labor Department said the consumer price index rose 0.2 percent in October, matching the median forecast among economists polled by Reuters. The core CPI rate, which excludes volatile food and energy prices, was up 1.9 percent on a year-over-year basis, which is just short of the Fed's 2 percent inflation goal.

The yield on two-year Treasuries notes was up 3 basis points at 0.880 percent, while the five-year Treasuries yield was up nearly 4 basis points at 1.689 percent.