NEW YORK, Oct 11 (Reuters) - U.S. Treasury yields extended their fall on Thursday after data showed a smaller-than-expected increase in U.S. inflation, denting expectations of a more aggressive pace in raising interest rates by the Federal Reserve.
The Consumer Price Index increased 0.1 percent last month after rising 0.2 percent in August. Excluding the volatile food and energy components, the CPI edged up 0.1 percent for the second straight month. The so-called core index had increased 0.2 percent in May, June and July.
U.S. 10-year note yields were last at 3.176 percent , down from 3.225 percent late on Wednesday.
U.S. 30-year bond yields also fell to 3.356 percent , versus Wednesday’s 3.401 percent. (Reporting by Gertrude Chavez-Dreyfuss Editing by Chizu Nomiyama)