TREASURIES-US yields drop after inflation data

BY Reuters | TREASURY | 01/15/25 08:44 AM EST

NEW YORK, Jan 15 (Reuters) - U.S. Treasury yields fell on Wednesday after data showed headline inflation in the world's largest economy rose marginally above forecasts in December, while the core number came in as expected.

U.S. 10-year yields extended their fall after the data and was last down 8.6 basis points (bps) at 4.702%.

The U.S. two-year yield, which reflects interest rate expectations, dropped 8 bps to 4.287%. (Reporting by Gertrude Chavez-Dreyfuss)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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