NEW YORK, June 12 (Reuters) – U.S. Treasury yields fell
on Wednesday after an inflation reading came in softer than
expected, raising hopes for a rate cut from the Federal Reserve
in the coming months, and the central bank kept interest rates
at current levels in its latest policy statement.
U.S. consumer prices were unchanged in May, according to the
Labor Department’s consumer price index (CPI), following a 0.3%
increase in April and below the 0.1% increase forecast by
economists polled by Reuters.
In the 12 months through May, the CPI advanced 3.3% after
increasing 3.4% in April and slightly below the 3.4% forecast.
“The headline number was flat, but that had a lot of
uncertainty around it. The core number, which is more signal
than noise, was below the consensus,” said Brian Jacobsen, chief
economist at Annex Wealth Management in Menomonee Falls,
Wisconsin.
“After three…
