NEW YORK: US Treasuries yields pared their initial increase early Wednesday after data showed U.S. consumer prices fell more than forecast in November, reviving some bets the Federal Reserve will stick to its "considerable time" pledge to keeping interest rates near zero.
The U.S. central bank's policy-setting group, Federal Open Market Committee, is scheduled to release its last policy statement of 2014 at 2 p.m. (1900 GMT).
The U.S. Labor Department said the consumer price index fell 0.3 percent last month, which was the biggest monthly decline since December 2008 when the FOMC adopted its near zero interest rate policy in response to global financial crisis.
The benchmark 10-year Treasuries yield was up 1.6 basis points at 2.087 percent. It was about 2.10 percent prior to the release of the latest CPI data.
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