US Treasuries retained their gains on Wednesday following the release of inflation data that showed that consumer prices rose moderately in July. The government’s 10-year note auction cleared at a yield of 4.683%, the highest in nearly two decades, Reuters reported. The inflation reading weakened the case for a Federal Reserve rate hike next month.
Although the auction attracted healthy demand, the elevated yield reflected lingering investor concerns about inflation and interest rates amid continued strength in the US economy.
