Treasury yields advanced on Wednesday after November's consumer price index data matched expectations.
The benchmark 10-year Treasury yield rose less than 5 basis points to 4.269%. Meanwhile, the 2-year Treasury rose less than 1 basis point to 4.153%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
The consumer price index showed a 12-month inflation rate of 2.7% after increasing 0.3% on the month, in line with Dow Jones consensus estimates. Excluding food and energy costs, core CPI was at 3.3% on an annual basis and 0.3% monthly, also matching consensus.
These inflation insights are some of the last key economic data points due to be released before the Federal Reserve's monetary policy meeting next week.
Rob Williams of Sage Advisory noted that while the 10-year Treasury yield has tried to make its way above the 4.3% level following the CPI print, it's rarely done so successfully. In fact, he noted that over the last year, it's only moved above that level "less than 10% of the time."
"Hopefully it doesn't go too far the other way, but I think we're pretty fairly priced for what the Fed's going to do now," the firm's chief investment strategist said to CNBC.
Money Report
The central bank is set to announce its next interest rate decision as well as share guidance about the policy and economic outlook on Dec. 18.
Investors will not be hearing from Fed policymakers before the rate decision as they are currently in a blackout period that prevents them from giving public remarks ahead of a central bank meeting.
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