Treasurys fall after inflation report

NEW YORK — Treasury prices fell Thursday after a government report found a bigger-than-expected rise in inflation and as stocks overcame early losses.

In late trading, the benchmark 10-year Treasury fell 12/32 to 101 10/32 and its yield rose to 3.46 percent from 3.42 percent late Wednesday. The 30-year bond fell 21/32 to 103 8/32. Its yield rose to 4.31 from 4.27 percent.

The drops came as the Labor Department said its consumer price index rose 0.2 percent last month. The overall number was in line with what economists expected, but prices excluding energy and food were up 0.2 percent and higher than the 0.1 percent increase analysts had forecast.

Positive indicators on the economy were also weighing on Treasury prices. The number of people filing claims for first-time jobless benefits fell by more than expected last week, and a report on manufacturing in the New York region showed a pickup in activity for October.

Treasury’s extended their slide as stocks rebounded from early selling to end with modest gains. That weakened demand for safe-haven Treasurys.

A report from JPMorgan Chase & Co. on Wednesday helped send the Dow Jones industrials past the 10,000 level for the first time in a year. Rising energy prices Thursday added to the stock market’s advance and offset losses from financials.

In other trading, the two-year note fell 2/32 to 100 3/32. Its yield rose to 0.96 percent from 0.92 percent.

The yield on the three-month T-bill slipped to 0.05 percent from 0.06 percent. Its discount rate was 0.06 percent.

The cost of borrowing between banks was unchanged. The British Bankers’ Association said the rate on three-month loans in dollars — the London Interbank Offered Rate, or Libor — held steady at 0.28 percent.