NEW YORK, April 11 (Reuters) - U.S. Treasuries prices trimmed their earlier gains on Friday after news that producer prices rose more than forecast in March, challenging a view that domestic inflation will remain tame for a long time.
The Labor Department said its index on producer prices rose 0.5 percent last month for its biggest rise since June. Analysts polled by Reuters had forecast a 0.1 percent increase.
The index’s core reading, which excludes volatile food and energy prices, posted a 0.6 percent increase in March for its biggest monthly gain in three years.
Benchmark 10-year Treasuries notes last traded 3/32 in price with a yield of 2.616 percent, down 1 basis point from late on Thursday. (Reporting by Richard Leong; Editing by Bernadette Baum)