Treasury yields sharply lower in response to the CPI data.
The 2-yr note yield, at 4.07% earlier, is down two basis points to 3.98%.
The 10-yr note yield, at 3.51% earlier, is down four basis points to 3.47%.
Key takeaway from the report as far as the market is concerned is that the moderation in inflation, coupled with the moderation in the shelter index, should at least spur the Fed to entertain keeping its policy rate on hold when it meets again in June.
13:00 ET: $35 bln 10-yr Treasury note auction results
2-yr: -3 bps to 3.97%
3-yr: -9 bps to 3.63%
5-yr: -8 bps to 3.42%
10-yr: -5 bps to 3.47%
30-yr: -4 bps to 3.81%