NEW YORK (CNNfn) - Treasury securities ended little changed Tuesday in listless trading after a key report on inflation failed to provide direction.
In the currency markets, the dollar rose against both the euro and the yen.
Shortly before 3 p.m. ET, the 10-year Treasury note, considered the market benchmark, was flat in price at 102-16/32. The yield, which  moves in the opposite direction to price, was also unchanged from the 6.15 percent late Monday level.
The 30-year bond rose 1/32 to 104-20/32, its yield falling to 5.91 percent from 5.92 percent.
Analysts said the latest economic news did little to alter expectations about upcoming monetary policy. The Consumer Price Index (CPI), which measures inflation at the retail level, rose 0.6 percent in June due to higher energy costs, the Labor Department reported.
The number was slightly above consensus estimates of a 0.4 percent gain. But the core rate, which excludes volatile food and energy prices, rose 0.2 percent, in line with forecasts.
Bruce Alston, director of fixed income at Value Line Asset Management, said, "The core CPI wasn't any news that would push the market in one direction  or another."
The fed funds contract, which gauges market expectations for Federal Reserve policy, is suggesting a 50 percent chance of a tightening at the next meeting on Aug. 22.
The Fed has raised short-term interest rates six times in the past year in order to cool the economy and keep inflation at bay. Worries about higher rates weighed on Treasurys in the previous two sessions.
Despite lackluster activity, the market drew support from broad-based weakness among U.S. equities. In late trading, all three major U.S. stock indexes were lower.
When stocks decline, investors often shift money into the relative safety of government securities.
With the CPI report out of the way, investors now look ahead to Fed chief Alan Greenspan's appearance before the Senate Banking Committee and June housing starts, both slated for Thursday. Greenspan's testimony on the economy and monetary policy will be closely watched for clues about the outlook for interest rates.
In the absence of a major event, Mike Ryan, senior fixed income strategist at PaineWebber, expects Treasurys to trade in a fairly narrow range until Thursday.
Dollar moves higher
The dollar advanced against both the euro and the yen Tuesday. The euro hit a three-week low against the U.S. currency, and fell below the psychologically significant 93-cent level. Analysts said growing perceptions that the U.S. economy may enjoy a soft landing supported the dollar.
"A soft landing implies that the dollar is a more attractive investment alternative for global investors going forward than implied by the hard  landing scenario," said Bob Lynch, currency strategist at BNP Paribas.
Shortly before 3 p.m. ET, the euro traded at 92.50 cents, down from 93.63 cents Monday, a 1.2 percent gain in the dollar's value. Meanwhile, the dollar traded at 108.34 yen, up from 107.96 yen Monday. 
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