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The US dollar and Treasury yields came under pressure on Wednesday after a report showed that a key measure of consumer price inflation cooled last month.

Core consumer prices, which exclude the volatile food and energy components, fell to 1.7 per cent annual rate in November from 1.8 per cent in October, according to data from the labour department. That placed it back at the level that was struck from May – September.

The data were the latest indication of subdued inflation in the US. The Federal Reserve is targeting year on year price growth of 2 per cent.

After the release of the data, the dollar index fell from 94.10 to 93.85, leaving it down 0.22 per cent on the day. The 10-year Treasury yield slipped to 2.381 per cent from 2.425 per cent. Bond yields move in the opposite direction of prices.

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