(Updates with news of Tillerson ouster, CPI data)
By Kate Duguid
NEW YORK, March 13 (Reuters) - U.S. Treasury yields fell on Tuesday in choppy trading, turned down by news that President Donald Trump has ousted Secretary of State Rex Tillerson, and by earlier news that February consumer price data cooled, which suggested that the anticipated pickup in inflation is likely to be gradual.
Trump on Tuesday said he had replaced Secretary of State Tillerson with Central Intelligence Agency Director Mike Pompeo. Yields fell on uncertainty over U.S. foreign policy going forward, which will involve negotiations on trade, and with North Korea.
The Labor Department said its Consumer Price Index rose 0.2 percent last month, in line with expectations, after jumping 0.5 percent in January. In the 12 months through February, the CPI rose 2.2 percent, up from 2.1 percent in January.
Excluding the volatile food and energy components, the CPI gained 0.2 percent, in line with expectations, after accelerating 0.3 percent in January. The year-on-year increase in the so-called core CPI was unchanged at 1.8 percent in February.
At 8:57 a.m. (1257 GMT), the yield on 10-year government notes was 2.846 percent, down from 2.870 percent at Monday’s close. (Reporting by Kate Duguid Editing by Chizu Nomiyama and Nick Zieminski)