Yields Fall After US Inflation Data; ECB Raises Rates

The US Treasury yields dropped by one basis point to 4.951% after the release of the Consumer Price Index (CPI), but remained over 16 basis points higher than at the start of the week.

The U.S. Dollar Index retreated from its post-CPI high and ended near the 99.00 area, while USD/JPY fell 0.54% to around 153.60 after briefly rising to 154.49.

WTI crude traded near $97.00, about 3.4% lower on the day and on track for its first down session in five, as discussion of a Hormuz shipping arrangement reduced some immediate supply concerns.

The European Central Bank raised its three key policy rates by a further 25 basis points at its meeting, with officials signalling that inflation is set to remain above target for an extended period.