Yields on the 10-year Treasury spiked to nine-month highs on Wednesdays as prices slumped after unexpectedly strong inflation data reinforced the Federal Reserve’s concern about price pressures.

Data showed consumer price inflation rose 0.4 per cent in February, or 0.3 per cent stripping out volatile food and energy costs - more than economists had predicted. Year on year, prices were up 3 per cent, or 2.4 per cent for the core rate.