The 10-year U.S. Treasury yield was fell on Tuesday as investors parsed the latest inflation numbers with the Federal Reserve's last interest rate decision of the year looming.
The yield on the 10-year Treasury was lower by 3 basis points at 4.206%, trading near the key 4.2% level. The 2-year Treasury yield ticked down by less than 1 basis point to 4.73%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
The moves follow a largely tame inflation report. November's consumer price index inched up 0.1% from the prior month and was 3.1% higher than a year ago. Economists polled by Dow Jones anticipated the index would remain flat month-over-month, while the annual 3.1% rate was in line with expectations.
Core CPI, which excludes volatile food and energy prices, rose 0.3% from the prior month and 4% on the year. Both were in line with economists' consensus forecasts.
That comes ahead of the Federal Reserve's final monetary policy meeting of 2023, which is set to begin Tuesday. It will conclude with a new interest rate decision and guidance on the outlook for the economy and monetary policy on Wednesday.
Investors are widely expecting the Fed to leave interest rates unchanged and are hoping for clues about when policymakers may start considering rate cuts and how they expect the economy to fare as rates remain elevated. This includes whether a recession is expected next year or if the Fed will be able to achieve a soft landing.