BLBG: U.S. 10-Year Yields Lowest Since March After Consumer Prices
By Cordell Eddings
April 14 (Bloomberg) -- Treasury 10-year note yields traded near the lowest levels in three weeks after a report showing subdued inflation drove speculation the Federal Reserve will keep interest rates at record lows.
Treasuries pared earlier declines as prices rose 0.1 percent in March, in line with expectations. Excluding food and fuel, the core rate held steady. A separate report showed retail sales increased 1.6 percent last month, more than forecast.
“The Fed is not concerned about inflation because there is none, as the data shows,” said Thomas Tucci, head of U.S. government bond trading in New York at the Royal Bank of Canada, one of the 18 primary dealers required to bid at Treasury auctions. “There is no reason for the Fed to raise rates. The retail sales number is still a strong number. The million dollar question is how sustainable is that recovery in the economy going forward.”
The 10-year note yield traded at 3.82 percent at 8:48 a.m. in New York, according to BGCantor Market Data. It touched 3.80 percent yesterday, the lowest level since March 24. The 3.625 percent security due February 2020 was at 98 14/32.
To contact the reporters on this story: Cordell Eddings in New York at ceddings@bloomberg.net.
