10-year Treasury yield ticks lower after core CPI comes in slightly lightly lower than expected

The 10-year Treasury yield edged lower on Tuesday after the core reading of June's consumer price index gave traders some hope of easing inflation.

The 10-year Treasury yield fell about three basis points to 4.401%, and the 30-year yield lost nearly three basis points to sit at 4.945%. The 2-year yield was around flat at 3.889%.

One basis point is 0.01%. Yields and prices have an inverse relationship.

The consumer price index climbed 0.3% month over month, bringing its annual inflation rate to 2.7%. These figures were in line with expectations of economists polled by Dow Jones.

Excluding volatile food and energy prices, so-called core CPI added 0.2% on the month for a 12-month increase of 2.9%. The month-over-month change was slightly less than expected, while the year-over-year move matched a Dow Jones consensus.

Investors are also eyeing developments after White House National Economic Council Director Kevin Hassett said on Sunday that the Trump administration is looking into whether it has the authority to dismiss Federal Reserve Chair Jerome Powell.

“But certainly, if there's cause, he does,” Hassett said on ABC News' “This Week.” Although Trump has publicly stated he does not intend to fire Powell, Hassett's remarks indicate the White House is still exploring the option.