U.S. Treasury yields fall sharply as the dollar weakens due to soft inflation data

ChainCatcher news, according to Golden Ten Data, as core inflation in December unexpectedly edged down slightly, investors rushed to buy U.S. government bonds, causing U.S. Treasury yields to fall sharply, while the dollar was also sold off. The annual core inflation rate in the U.S. for December was 2.6%, not accelerating to the forecasted 2.7%. Although these inflation indicators are unlikely to change expectations that the Federal Reserve will keep interest rates unchanged later this month, they may ease concerns that accelerating inflation would delay a new round of rate cuts.