NEW YORK, Jan 11 (Reuters) - U.S. Treasury yields turned positive on Thursday as higher-than-expected consumer inflation slightly eased expectations of a rate cut at the Federal Reserve's policy meeting in March.
Data showed the headline CPI rose 3.4% in December on a year-on-year basis versus the consensus forecast of a 3.2% increase. On a monthly basis, CPI advanced 0.3% versus expectations of a 0.2% gain.
Core CPI, excluding volatile items like food and energy, rose 3.9% year-on-year, compared with forecasts of a 3.8% increase.
U.S. 10-year yields was last at 4.026%, little changed on the day, while two-year yields edged up to 4.379% . (Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrew Cawthorne)
