Treasuries End Higher
Despite higher inflation and CPI numbers released Wednesday, Treasuries gained throughout the day. The CPI rose 0.6% and core-rate inflation, excluding food and energy inputs, were up 0.2%. The market was expecting worse news after yesterday's stronger-than-expected PPI data. Some of the gains were made on bets that a strong yen will prompt buying from the Bank of Japan and trades related to the unwindig of German Bund call options, according to S&P Marketscope. The yield on the 10-year treasury dropped to 4.14%, down from Tuesday's close of 4.21%.