TREASURIES-U.S. yields dip with eyes on inflation data - NewsBreak

NEW YORK, Sept 13 (Reuters) - U.S. government bond yields dipped on Monday with markets looking ahead to consumer inflation data on Tuesday that is expected to show a continuing slowdown in the pace of price increases. Yields are seen remaining in a tight range after last week's 10- and 30-year auctions were met with strong demand. "It will likely take downside surprises for CPI and retail sales to register in the bond market in the next five days," said Jim Vogel, head of fixed income strategy and commentary at FHN Financial Capital Markets, in a client note. The core reading of the U.S. consumer price index is expected to show a rise of 0.3% in August, down from 0.5% the previous month and 0.9% in June. "The numbers are important to the run up to the fourth quarter, but they are not pivotal by themselves. Any weakness will be explained away by the (COVID-19) Delta wave," Vogel said. Shortages of basic materials and parts have created bottlenecks, and price increases, across various s