U.S. Government Bonds Rise; Fresh Signs of Tame Inflation Bolster Investors' Confidence that Fed Isn't in Hurry to Raise Rates
U.S. Treasury bonds rose on Friday as fresh signs of tame inflation bolstered investors' confidence that the Federal Reserve isn't in a hurry to raise interest rates.</br></br>In late afternoon trading, the benchmark 10-year note was 7/32 higher, yielding 2.320%. Yields fall as prices rise.</br></br>The yield was little changed compared with 2.314% at the end of last week. It was 3% at the start of the year.</br></br>Long-term inflation expectations fell to the lowest level since 2009, according to the Thomson-Reuters/University of Michigan November consumer sentiment survey released Friday. Meanwhile, a report from the Labor Department showed prices of imported goods fell 1.3% in October, the largest monthly decline in more than two years.</br></br>Inflation chips away investors' fixed returns on bonds over time and is the main threat to long-dated bonds. Low inflation makes bonds more attractive to investors.