10-year Treasury yield falls after inflation data, Fed minutes

U.S. Treasury yields dipped on Wednesday as investors digested September inflation data and insights into the Federal Reserve's tapering plans.

The yield on the benchmark 10-year Treasury note moved 3.8 basis points lower to 1.542% by 4:10 p.m. ET. The yield on the 30-year Treasury bond fell by 6.8 basis points to 2.037%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Treasurys

TICKER	COMPANY	YIELD	CHANGE
US1M	U.S. 1 Month Treasury	5.353%	UNCH
US3M	U.S. 3 Month Treasury	5.396%	UNCH
US6M	U.S. 6 Month Treasury	5.392%	UNCH
US1Y	U.S. 1 Year Treasury	5.205%	UNCH
US2Y	U.S. 2 Year Treasury	4.94%	UNCH
US10Y	U.S. 10 Year Treasury	4.479%	+0.004
US30Y	U.S. 30 Year Treasury	4.583%	UNCH

Minutes from the Federal Open Market Committee's September meeting showed the central bank could begin a "gradual tapering process" by as soon as mid-November.

Consumer prices increased slightly more than expected in September with the consumer price index for all items rising 0.4% for the month, compared to the 0.3% Dow Jones estimate, the Labor Department reported Wednesday. On a year-over-year basis, prices increased 5.4% vs. the estimate for 5.3%.

However, excluding volatile food and energy prices, the CPI increased 0.2% on the month and 4% year over year, against respective estimates for 0.3% and 4%.

"The print reflected that while transitory factors continue to roll-off, stickier more persistent factors are becoming more prevalent, which the Fed is more likely to respond to," Bank of America analysts said in a note.

Fed Governor Lael Brainard is scheduled to make a speech at 4:30 p.m. ET, about engaging tribal leaders on financial inclusion and the economic challenges of the pandemic at a roundtable with Oklahoma's Tribal Leaders.

Fed Governor Michelle Bowman is also set to speak at 8 p.m. ET about making monetary policy and the economic outlook at the Dykhouse Scholar Program Speakers Series in Money, Banking, and Regulation, at South Dakota State University.

— CNBC's Yun Li and Maggie Fitzgerald contributed to this market report.