WASHINGTON (dpa-AFX) - Following the pullback seen during Tuesday's session, treasuries showed a notable move back to the upside during trading on Wednesday.
Bond prices advanced early in the session and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.0 basis points to 4.242 percent.
The ten-year yield more than offset the 3.7 basis point increase seen in the previous session, falling to its lowest closing level in a month.
The strength among treasuries came after the Commerce Department released closely watched consumer price inflation data that matched expectations.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in October, matching the uptick seen in September as well as economist estimates.
The annual rate of growth by the PCE price index accelerated to 2.3 percent in October from 2.1 percent in September, which was also in line with expectations.
Excluding food and energy prices, the core PCE price index climbed by 0.3 percent in October, matching the increase seen in September as well as economist estimates.
The annual rate of growth by the core PCE price index crept up to 2.8 percent in October from 2.7 percent in September, which was also in line with expectations.
Following the release of the Federal Reserve's preferred inflation readings, CME Group's FedWatch Tool is indicating a 70.0 percent chance the central bank will lower interest rates by 25 basis points next month.
'The momentum in inflation toward the Fed's 2% target has sputtered recently but not enough, in our view, to prevent the Fed from cutting interest rates in December,' said Ryan Sweet, Chief U.S. Economist at Oxford Economics.
Following the Thanksgiving Day holiday on Thursday, trading activity on Friday is likely to be subdued amid a lack of major U.S. economic data.
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