May 15 (Reuters) - U.S. Treasury yields fell to more than five-week lows on Wednesday after data showed that U.S. consumer prices rose less than expected in April, boosting expectations that the Federal Reserve will cut interest rates two times this year.
The consumer price index rose 0.3% last month after advancing 0.4% in March and February. In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March. Economists polled by Reuters had forecast the CPI gaining 0.4% on the month and advancing 3.4% year-on-year.
The closely watched core CPI rose 0.3% in April, as expected, after advancing 0.4% in March. In the 12 months through April, the core CPI increased 3.6%. That was the smallest year-on-year gain since April 2021 and followed a 3.8% increase in March.
Benchmark 10-year yields were last down 7 basis points on the day at 4.377% and got as low as 4.340%, the lowest since April 5.
Two-year yields fell 7 basis points to 4.747% and reached 4.711%, also the lowest since April 5.
The inversion in the yield curve between two-year and 10-year notes was little changed on the day at minus 37 basis points.
(Reporting By Karen Brettell; Editing by Andrew Heavens)
