Treasury Yields Fall After US Inflation Holds Steady at 3.4%

US Treasury yields fell during the North American session following the release of the Consumer Price Index (CPI) data, which showed inflation holding steady at 3.4% year on year in August.

The 10-year yield dropped by one basis point to 4.951%, but remained more than 16 basis points higher over the week.

Despite this, the US Dollar Index retreated from its post-CPI high and ended near the 99.00 area, with USD/JPY falling 0.54% to around 153.60 after briefly rising to 154.49.

The European Central Bank (ECB) raised its three key policy rates by a further 25 basis points at its September 10 meeting, citing continued pressure from the Middle East-driven energy shock.