TREASURIES-U.S. bond prices add gains after PPI data
NEW YORK Dec 13 (Reuters) - U.S. Treasuries prices extended earlier gains on Friday as data on U.S. producer prices suggested domestic inflation remained below the Federal Reserve's target and may need further monetary stimulus to achieve the central bank's inflation goal.
The Labor Department said its index on producer prices fell for a third straight months due to falling energy prices. The PPI index slipped 0.1 percent in November. Analysts polled by Reuters had forecast the PPI was likely unchanged from October.
The PPI core rate which excludes volatile food and energy prices edged up 0.1 percent last month, in line with economists' expectations.
Benchmark 10-year Treasury notes last traded 5/32 in price to yield 2.859 percent, down 2 basis points from late on Thursday.
Prior to the release of the November PPI report, they were up 2/32 with a yield of 2.868 percent.
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