Treasurys yields rise on low inflation report

(AP) Treasury yields rose Wednesday following a report that inflation remained low last month.

The yield on the 10-year U.S. Treasury note rose to 1.81 percent from 1.73 percent late Tuesday. The price fell 65.6 cents for every $100 invested.

The yield on the 30-year bond rose to 2.91 percent from 2.82 percent. The price fell $1.50 for every $100 invested.

Bond prices tend to fall when investors believe inflation is low. High inflation erodes the value of bonds by reducing the buying power of the fixed payments they make over time.

The government reported Wednesday that consumer prices were unchanged in July from June, as a small drop in energy costs offset higher food prices.

The Federal Reserve reported that output at factories rose 0.6 percent last month, the fourth straight month of increases.

The yield on the two-year note rose to 0.29 percent from 0.28 percent. The yield on the three-month bill fell to 0.9 percent from 0.10 percent.