Treasury Prices Fall on CPI News

MARKETSCOPE: Treasury prices skidded Wednesday morning following a report April core CPI rose more than expected 0.3% from 0.3% in March, raising questions whether the Fed will pause from rate hiking at its June meeting.

The headline April CPI rose 0.6%, up from 0.4% inMarch. On a year-ago basis, the overall index accelerated to a 3.5% pace from 3.4% in March, while the core sped up to 2.3% from2.1%.

The core rate is at the higher end of the Fed's comfort zone and just fractionally off the 2.4% cycle high. Energy prices were a major culprit in the overall price advance, climbing3.9%. Gas prices soared 8.8%.

The benchmark 10 year notes were at 99-21/32 for yield of 5.178%, compared to 100-03/32 for yield of 5.111% hours earlier Wednesday. The 30-year bonds fell to 88-09/32 for yield of 5.291% from 89-03/32 for yield of 5.226%.

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