Bond yields ended unchanged on Wednesday, showing little response to a steep fall in retail inflation in November. Instead, traders chose to remain focused on the impending interest rate decision from the US Federal Reserve.
Consumer inflation fell steeply in November to 3.63 percent compared to 4.2 percent in October. The steep fall in the inflation rate, however, was anticipated and a Bloomberg poll had pegged inflation at 3.9 percent.
As such, bond yields continued to trade in a narrow band on Wednesday. While a rate hike from the Federal Reserve is factored in, traders will be analyzing the Fed's commentary to assess the pace of rate hikes likely in 2017.
The benchmark 10-year bond yield ended at 6.40 percent compared to its previous close of 6.41 percent. Intraday, yields touched a high of 6.42 percent.
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