U.S. government debt yields held steady on Wednesday after a government report showed no change to consumer prices across the month of November.
The Labor Department's Consumer Price Index was unchanged last month on a seasonally adjusted basis after rising 0.3 percent in October. Over the last 12 months, the headline index increased 2.2 percent before seasonal adjustment; that's down from the October year-over-year print of 2.5 percent.
Core CPI, which does not include volatile energy or food prices, increased 0.2 percent in November and is up 2.2 percent in the past 12 months.
The yield on the benchmark 10-year Treasury note traded higher at 2.89 percent, while the yield on the 30-year Treasury bond edged higher to 3.13 percent. The yield on the benchmark 2-year Treasury note was unchanged at 2.774 percent. Bond yields rise when prices fall.
Short-term yields, impacted by changes in Fed policy, have been anchored in place in recent months as Chair Jerome Powell led his colleagues in three increases to the overnight lending rate. In contrast, inflation and economic expectations dictate the movement of long-term rates; investors estimate how much they should be compensated beyond inflation for holding government debt over several years.