1.   Bonds fell after the government said labor costs in the fourth quarter rose at their fastest pace in five years, a sign inflation may be picking up pace.

2.   Bond investors took that as a sign inflation could crop up later this year and drive bond yields higher.

3.   Bonds pared earlier gains as some traders took rising commodities prices as a sign inflation might accelerate later this year.

4.   Financial shares gained amid rising bonds and signs German inflation is subdued.

5.   Separately, manufacturers in the Chicago and New York regions reported their costs of materials rose this month --another sign inflation could be on the rise.

6.   Signs inflation will accelerate built over the summer, then eased in September and October, partly as the deutsche mark recovered against the dollar.

7.   Separately, manufacturers in the Chicago and New York regions reported their costs of materials rose this month -- a sign inflation could be on the rise.

8.   The U.S. experimental consumer price index for November showed less inflation than official measures of consumer prices -- another sign inflation remains tame.

9.   Traders said that signs inflation is still no problem in Germany and Austria outweighed lingering concerns that interest rates in the U.S. will be lifted next month.

10.   U.S. labor costs continued to rise at a subdued pace in the third quarter while consumer confidence slumped this month, signs inflation will remain restrained as growth slows.