The yield on the two-year Treasury note fell to 4.27%. The 10-year yield fell to 4.67%.

Although the consumer price index rose 2.9% annually in December, the core CPI, which excludes food and energy, fell short of expectations, rising 3.2%. That was enough to send yields lower and raise some hope that the Federal Reserve may cut interest rates several times this year.

According to Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, this reading should help the Fed act more dovish ahead of its monetary policy meeting on January 28th and 29th.

“It will not change expectations for a pause later this month, but it is likely to dampen some discussion of a possible Fed rate hike,” Zentner writes. “Judging by the market’s initial reaction, investors appeared to be feeling a sense of relief after a few months of more difficult inflation readings.”

Stock futures surged on the consumer price index, but bank earnings got off to a solid start.