Bond ETFs jump after fresh inflation data send Treasury yields lower

Exchange-traded funds that hold bonds were rallying on Wednesday morning, following fresh data from the consumer-price index showed the rate of core U.S. inflation slowed slightly last month.

The iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF were each up around 0.8% on Wednesday morning, after the CPI inflation data sent yields lower, according to a recent check of FactSet data. The yield on the 10-year Treasury note was dropping about 13 basis points to around 4.66% in morning trade.

Still, the iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF remained in the red so far this year, each down 0.2%, after the recent rise in Treasury yields ahead of Wednesday’s inflation report had been dragging the funds lower.