Bonds Higher

Treasury prices moved higher Wednesday on mixed CPI data

Treasury prices were higher Wednesday on mixed CPI data. The 10-year yield, which moves in the opposite direction as its price, was pushed down to a multi-month low at 4.06%. April CPI rose 0.5% but the core rate was unchanged. April headline followed 0.6% rise in March, when core rate, excluding food and energy, was up 0.4%. On a year on year basis, CPI accelerated to a 3.5% pace from 3.1% the prior month, but the core decelerated to a 2.2% rate from a 2.3% pace previously. Energy prices rose 4.5% in April following gains of 4.0% in March and 2.0% in February. Transportation prices rose 1.8%, food prices were up 0.6%, housing prices were up 0.3%, while medical care costs rose 0.2%.

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