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TREASURIES-Yields rise on higher inflation, before Yellen
January 18, 2017 / 2:12 PM / 8 months ago

TREASURIES-Yields rise on higher inflation, before Yellen

* Consumer prices rise in December
    * Yellen to speak on monetary policy

    By Karen Brettell
    NEW YORK, Jan 18 (Reuters) - U.S. Treasury yields rose on
Wednesday after data showed rising consumer prices and as
investors awaited a speech by Federal Reserve Chair Janet
Yellen.
    U.S. consumer prices increased in December as households
paid more for gasoline and rental accommodations, leading to the
largest year-on-year rise in 2-1/2 years. 
    Bond prices had fallen before the consumer price figures,
which analysts attributed to investors preparing for new data
this week and Yellen's speech, with no news headlines seen as
driving the move.
    "CPI came right in as expected," said Mary Ann Hurley, vice
president in fixed income trading at D.A. Davidson in Seattle.
    Benchmark 10-year notes fell 14/32 in price to
yield 2.38 percent, up from 2.33 percent late Tuesday.
    Some of Wednesday's bond weakness is probably due to "the
compilation of different Fed officials comments indicating that
if things continue as they are, rates are going to continue to
go higher," Hurley said.
    Yellen is due to speak at 3 p.m. EST (2000 GMT) about
monetary policy to the Commonwealth Club in San Francisco.
    The Treasury Department on Thursday will auction $13 billion
of 10-year Treasury Inflation-Protected Securities, which will
gauge concern about rising inflation as President-elect Donald
Trump prepares to take office.

 (Editing by Lisa Von Ahn)

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