US 10-Year Yield Rises After Hot CPI
The yield on the 10-year US Treasury note rose to around 4.95%, extending the rebound from a near-two-month low of 4.84% on November 5th after hot inflation data consolidated bets that the Federal Reserve will deliver multiple additional rate hikes in the current cycle. Both headline and core consumer prices rose more than expected in October, adding to evidence that soaring energy prices are being transmitted into core sectors of a resilient economy. The data followed hawkish comments from Fed Governor Waller, who advocated for a 25-bps rate hike in December with the possibility of a larger move should prices rise more than the central bank expects. Treasury yields of all maturities had already rebounded this week as markets regained risk sentiment following a brief flight to safety after the Democratic Party gained control of Congress, driving markets to reconsider advances in the tech sector that has carried investment in the US economy.
The yield on the 10-year US Treasury note rose to around 4.95%, extending the rebound from a near-two-month low of 4.84% on November 5th after hot inflation data consolidated bets that the Federal Reserve will deliver multiple additional rate hikes in the current cycle. Both headline and core consumer prices rose more than expected in October, adding to evidence that soaring energy prices are being transmitted into core sectors of a resilient economy. The data followed hawkish comments from Fed Governor Waller, who advocated for a 25-bps rate hike in December with the possibility of a larger move should prices rise more than the central bank expects.
Treasury yields of all maturities had already rebounded this week as markets regained risk sentiment following a brief flight to safety after the Democratic Party gained control of Congress, driving markets to reconsider advances in the tech sector that has carried investment in the US economy.