NEW YORK, March 12 (Reuters) - U.S. Treasury yields drifted lower on Tuesday after data showed a modest rise in core inflation in February as well as the headline number on an annual basis, backing expectations the Federal Reserve will remain pat on any interest rate moves throughout the year.
The Labor Department said on Tuesday its consumer price index grew 0.2 percent in February due to gains in the costs of food, gasoline and rents. The index was unchanged for three straight months.
Excluding the volatile food and energy components, the CPI edged up just 0.1 percent, the smallest increase since August 2018. In the 12 months through February, the CPI rose 1.5 percent, the smallest gain since September 2016.
In early trading, U.S. 10-year note yields fell to 2.639 percent, down from 2.641 percent late on Monday.
U.S. 30-year bond yields were slightly down at 3.031 percent , from 3.032 percent on Monday.
On the short end of the curve, U.S. 2-year yields slipped to 2.471 percent, compared with Monday’s 2.477 percent. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Bernadette Baum)