Inflation data push Treasury yields closer together

The gap between yields on shorter- and longer-term Treasury yields narrowed Wednesday after new data showed consumer prices rose in August. The gap narrowed mainly because Longer-dated Treasury yields moved lower after stronger than expected U.S. inflation data.

In turn, 10 and 30 year U.S. yields were lower on Wednesday morning. The yield on the benchmark 10-year Treasury note, which helps set borrowing costs on everything from corporate debt to mortgages, recently traded at 1.556%.

That is down from 1.579% at Tuesday’s close. The yield on the 30-year Treasury bond fell to a recent 2.051%, down from 2.106% Tuesday.