US Treasury Yields React to Inflation Report

On Wednesday, the United States Treasury yields experienced a significant drop following the release of the latest consumer prices report. The annual headline inflation in the US for December 2024 matched expectations at 2.9%, but the annual core inflation fell below analyst projections, registering at 3.2%.

Impact on Treasury Notes and Bonds

The yield on the 10-year Treasury note saw a sharp decline, dropping by 9.8 basis points to 4.690% by 8:36 am ET. Similarly, the two-year note's yield decreased by 8.4 basis points to 4.281%, and the 30-year bond's yield fell by 7.3 basis points to 4.912% at the same time.