US Treasuries surged as traders pulled back from bets on Federal Reserve interest-rate hikes after consumer prices data came in lower than forecast. The yield on two-year Treasuries — which are sensitive to the near-term outlook for Fed monetary policy — fell as much as 14 basis points to 4.14% and was headed for its biggest one-day decline since February. The probability that the US central bank raises rates later this month, as implied by the interest-rate swap market, fell to about 20% from more than 40%. "It's a broad-based downside surprise," said Dan Carter, senior portfolio manager at Fort Washington Investment ... (full story)