Treasuries were under pressure this morning in very light volume, but caught a bid on weaker than expected Philly Fed data and are back near unchanged levels. Prices continued to trade heavy early in the session despite the erosion on Wall St. US Consumer Price Index (CPI) rose 0.2% in February, with the core up 0.3%, a little higher than expected. That leaves Y/Y growth at 1.1% and 2.6% respectively. Initial jobless claims fell 12K to 371K for the week ending Mar-16 from an upwardly revised 383K the week prior, compared to expectations of a 375K result. The CPI and claims data weighed modestly on Treasuries. Also, the index of leading indicators was unchanged in February. Stock prices made the biggest negative contribution. The data continue had been slightly bond unfriendly, but recently released Philly Fed data added a bid to Treasuries. The headline Philly Fed index slumped to 11.4, well below expectations of 17.0. Supply continues to be an issue with several issues hitting the market, including a $1.5 bln multi-tranche deal from Constellation Energy that is expected today. Traders will watch for the release of the FOMC minutes, while keeping an eye on stocks into the close.