NEW YORK, March 12 (Reuters) - U.S. Treasury yields

drifted higher on Tuesday after data showed higher-than-expected

inflation in the world's largest economy, suggesting the Federal

Reserve could keep interest rates higher for longer.

Data showed that the consumer price index (CPI) rose 0.4%

last month after climbing 0.3% in January. In the 12 months

through February, the CPI increased 3.2%, after gaining 3.1% in

January.

The benchmark U.S. 10-year yield gained 2.3 basis points

(bps) to 4.127%, while the two-year yield rose 2.9

bps to 4.563%.