Arabic version: قفزة عوائد سندات الخزانة بعد تقرير قوي لمؤشر أسعار المستهلكين في أكتوبر

According to Cnbc, Treasury yields rose sharply on Tuesday after October consumer price index data came in hotter than economists expected. The benchmark 10-year Treasury note yield climbed more than 14 basis points to 5.004%, while the 30-year bond yield rose more than 11 basis points to 5.367%. The 2-year note yield added more than 19 basis points to 4.748%.

The 10-year yield, a benchmark for mortgages, car loans and credit card rates, had last traded above 5% earlier in the month. In October, the 10-year and 30-year yields reached fresh 24-year highs. A basis point equals 0.01%, and bond yields move inversely to prices.

October CPI increased 0.4%, exceeding the 0.3% forecast in a Dow Jones poll of economists, though it was below September’s 0.6% gain. Core CPI, which excludes food and energy prices, rose 0.3%. Economists had expected a 0.2% monthly increase, while the result matched September’s core reading.

Federal Reserve Governor Christopher Waller said he would support “more robust action” if inflation data prove stronger than expected. Speaking at a Bank of England-hosted central bank conference in London, Waller said a 50-basis-point policy-rate increase should be considered at the December meeting in that case, arguing that a 25-basis-point hike could put the Fed’s credibility at risk.

Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said persistent inflation could lead to a more aggressive tightening cycle and potentially extend rate hikes into 2027. Markets have largely priced in a 25-basis-point December increase, according to CME Group’s FedWatch. Wholesale inflation data due Friday, along with CPI and stronger-than-expected October employment data, may shape the Fed’s next decisions.