In other news, the federal government swung to a surplus of $214.3 billion in April, primarily reflecting the revenue from that month's annual tax filing deadline. Rising inflation is a threat to Treasury prices because it erodes the purchasing power of their fixed payments, putting upward pressure on rates. The British Pound hit its lowest level in four months, after the Bank of England reduced its growth and inflation outlook for 2018 and 2019 while keeping rates steady as expected.