NEW YORK (MarketWatch) -- Treasury prices turned up on Wednesday, pushing yields lower, after a report showed the government's consumer price index rose 0.4% in November in line with expectations. Core prices, excluding food and energy, were flat, while economists expected a slight increase. Two-year note yields (UST2YR 0.84, +0.02, +2.43%) declined 2 basis points to 0.84%. A separate report showed housing starts rose to a 574,000 pace in November. Price activity is likely to be muted before the Federal Reserve completes its monetary policy meeting later in the session. Bond analysts expect no change to the central bank's commitment to keep interest rates low for some time, though its assessment of the economy is likely to be upgraded.
