US bond yields rose after consumer price index data pointed to further interest rate hikes

Written by Herbert Lash

the newYorkOct 13 – Treasury yields rose on Thursday after a higher-than-expected US consumer price report for September indicated that the Federal Reserve would have to keep interest rates low for longer to control inflation.

* The Consumer Price Index rose 0.4% last month, after rising 0.1% in August, according to the Labor Department. Economists polled by Reuters had expected a 0.2 percent rise.

* The CPI The core index advanced 6.6% year over year, above the 6.3% recorded in the 12 months through August. Economists had expected a 6.5% increase in September.

* Two-year bond yields, which are usually in line with interest rate expectations, rose 23.5 basis points to a 15-year high of 4.523%.

* Andre Skipa said: “The numbers were obviously very bad.” RBC Global Asset Management. “It highlights this situation where inflation is almost always higher than expected, forcing the Federal Reserve to move major positions again.”

* The yield on the benchmark 10-year note rose 14 basis points to 4.042%, while the yield on the 30-year note improved 8.4 basis points to 3.971%.

* The spread between two-year and 10-year bond yields, which is seen as a harbinger of a recession, widened to -48.3 basis points.