Treasury Yields Slip After Inflation Data

US government bond yields slid lower Friday after data showing the fastest inflation in decades reinforced investors’ expectations for the economy to start slowing next year while the Federal Reserve tightens monetary policy.

In recent trading, the yield on the benchmark 10-year US Treasury note was 1.479%, compared with 1.486% Thursday.

Core price index climbed 4.9% in November from a year earlier. As the cost of groceries, clothing and electronics have gone up in the US. Yields on US government debt were mostly lower Friday morning.

The CPI reading could solidify the view that the Federal Reserve will act more quickly to tighten monetary conditions when it meets next week and raise interest rates next year to cool surging pricing pressures.