By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices extended gains and the dollar remained lower versus the euro and Japanese yen on Friday after the U.S. said its consumer price index, excluding food and energy, came in softer than economists expected in August. Total CPI rose 0.3%, as predicted. Yields on 10-year notes, [sut10y], which move inversely to prices, fell 7 basis points to 2.70%. The dollar index (DXY 81.22, -0.03, -0.03%) , which tracks the performance of the greenback against a basket of six major currencies, fell to 81.192, down from 81.239 late Thursday. The dollar recovered versus the euro and resumed a decline against the yen.
