Inflation Reading: Food Energy and Treasury Notes

inflation reading: Separately, industrial production climbed 0.8% in December, rising by the largest amount in two years, according to Market Watch. Inflation topping 2% in 2016, a level viewed as the Federal Reserve's target for a healthy economy, might compel the central bank to increase rates at a rapid clip, in turn encouraging selling in Treasury notes. In the latest U.S. inflation reading, the Consumer Price Index rose 0.3% in December, while core CPI, which excludes food and energy, added 0.2%. The index rose 2.1% overall in 2016, its fastest pace since 2011. Investors tend to unload government bonds in the face of expectations of higher rates because they can repurchase richer-yielding Treasury notes later. Her comments at 3 p.m. Meanwhile, Federal Reserve Chairwoman Janet Yellen during the afternoon said she expects interest rates to rise a few times per year until the end of 2019. (news.financializer.com). As reported in the news.