U.S. Treasury yields tumbled Thursday after the latest inflation data showed a dip last month, suggesting the Federal Reserve could start to lower interest rates this year.
The yield on the 10-year Treasury fell 7.4 basis points at 4.205%. The 2-year Treasury yield pulled back 11.9 basis points to 4.511%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
The June consumer price index, which measures the costs for a basket of goods and services, slid 0.1% from the prior month, according to the Labor Department on Wednesday. That pushed the 12-month rate to 3%, or its lowest level in more than three years.
Economists surveyed by Dow Jones were expecting June’s CPI to reflect a 0.1% rise on a monthly basis and 3.1% from a year earlier.
Core CPI, which excludes volatile food and energy prices, rose 0.1% on a monthly basis and 3.3% from the year-ago period. The consensus forecast was for increases of 0.2% and…
