Bond yields dive after consumer prices reading is lighter than expected, quelling inflation fears

Government debt yields dropped Thursday after the Labor Department said consumer prices rose less than expected in September, calming inflation fears that sent the 10-year Treasury yield to its highest in seven years earlier this week. The headline consumer price index came in at 0.1 percent, short of the 0.2 percent anticipated and following August's 0.2 percent gain. Excluding volatile food and energy components, the CPI edged up 0.1 percent for the second straight month, bringing the year-over-year gain in the core figure to 2.2 percent.