| NEW YORK, June 8
NEW YORK, June 8 U.S. Treasury long-dated yields
pared gains on Thursday, in line with German bonds, after the
European Central Bank reduced its inflation forecast to reflect
lower oil prices.
The lower inflation outlook suggested that the ECB will
likely keep its stimulus program for now even though growth
projections for the region were revised higher.
The ECB now expects inflation of 1.5 percent in 2017 and 1.3
percent in 2018, compared with its forecasts of 1.7 percent and
1.6 percent respectively in March. That is still well below its
target of just under 2 percent.
Further pushing yields lower was a remark by ECB President
Mario Draghi, who said reducing the central bank's stimulus plan
for the region was not discussed at the meeting.
Benchmark German 10-year bonds hit session
lows of 0.253 percent after Draghi's comment.
In early trading, U.S. 10-year Treasuries were
last down 1/32 in price, with yields at 2.185 percent, compared
with 2.198 percent before Draghi spoke.
U.S. 30-year bonds fell 4/32 in price, yielding 2.842
percent, slipping from 2.853 before Draghi's
(Editing by Bernadette Baum)