NEW YORK, April 11 (Reuters) - U.S. Treasury yields slipped on Wednesday after data showed U.S. consumer prices in March fell for the first time in 10 months, reinforcing expectations the Federal Reserve will raise interest rates at a gradual pace.
The Consumer Price Index slipped 0.1 percent last month, the first and largest drop since May 2017, after climbing 0.2 percent in February, the Labor Department said.
However, excluding the volatile food and energy components, the CPI climbed 0.2 percent, matching February’s increase. The so-called core CPI rose 2.1 percent year-on-year in March, the largest advance since February 2017, after increasing 1.8 percent in February.
In morning trading, the U.S. 10-year yields were down at 2.760 percent, from 2.797 percent late on Tuesday.
On the front end of the curve, U.S. 2-year yields dipped to 2.286 percent, compared with 2.315 percent on Tuesday. (Reporting by Gertrude Chavez-Dreyfuss Editing by Chizu Nomiyama)