Bonds flat despite inflation figures

NEW YORK (CNNMoney.com) -- Bond prices were little changed - despite an economic report released Friday that showed higher inflation numbers (in line with economists' estimates) - while investors sensed equities remained a safe bet.

The dollar weakened against the euro and rose against the yen.

The benchmark 10-year note slipped 1/32, or 31 cents on a $1,000 note, to yield 4.55 percent, up from 4.54 percent Thursday.

The 30-year note was unchanged to yield 4.70 percent, up from 4.69 percent. Treasury prices and yields move in opposite directions.

The inflation reading comes ahead of Wednesday's meeting of the Federal Reserve's Open Market Committee, at which time the central bank's policymakers will consider inflation pressures as they decide what to do with interest rates. There is broad consensus that the Fed will again leave rates unchanged.

Consumer prices, released Friday morning, showed an increase of 0.4 percent in February, up 0.2 percent with more volatile food and energy prices stripped out, according to Reuters; which although higher, are in line with forecasts.

Although consumer prices climbed, a separate report showed consumer confidence slipped to its lowest in six months to 88.8, down from 91.3 in February.

The 5-year note declined 1/32, or 31 cents on a $1,000 note, to yield 4.47 percent, while the 2-year note was flat for a yield of 4.60.

The euro bought $1.3309, up from $1.3234 late Thursday, while the dollar fell to ¥116.72 from ¥117.62.

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Fuel, food hit prices