U.S. Treasury debt yields fell on Tuesday as benign U.S. inflation data suggested less pressure for the Federal Reserve to raise interest rates sooner than expected.
There was also some safe-haven buying in the afternoon, boosting bond prices, in connection with tensions in the Middle East after the Federal Aviation Administration advised U.S. airlines not to fly to Tel Aviv in Israel. The country is in the midst of an offensive in the Gaza Strip where more than 600 people have been killed.
But it was the U.S. consumer price index data that caught investors' attention in a market that has been riveted by fighting in the Middle East and Ukraine.
U.S. core CPI, a closely-watched inflation gauge, was below the Fed's 2-percent target, preventing yields, which move inversely with bond prices, from ratcheting higher.