U.S. 10-year Treasury yield tops 5% again

[Financial News]  

U.S. Treasury yields surged again on the 10th (local time) amid expectations that the Federal Reserve (Fed) would raise interest rates further in response to inflation. The benchmark 10-year yield again topped 5% intraday.
According to CNBC, the 10-year yield surged 0.14 percentage points intraday to 5.004%. The 10-year Treasury yield serves as a benchmark interest rate for mortgages, auto loans and credit card installment plans. It fell below 5% earlier this month, but the higher-than-expected October Consumer Price Index (CPI) pushed yields up again.
The October CPI released that day by the Bureau of Labor Statistics (BLS), part of the U.S. Department of Labor, rose 0.4% from the previous month on a seasonally adjusted basis, 0.1 percentage points above market expectations. The core CPI, which excludes energy and food prices that are highly volatile month to month, also rose 0.3%, exceeding market expectations by 0.1 percentage points.
The rise in energy prices, which has recently fueled inflation, appeared to have slowed, but it was confirmed that the upward trend in prices had not abated.
Amid this, Fed Governor Christopher J. Waller, one of the central bank’s leading moderate voices, said at an event in London, U.K., that a 0.5-percentage-point increase in December—the so-called “big step”—would be necessary.
As the bond market faced selling pressure, the yield on the 30-year U.S. Treasury, the benchmark for long-term interest rates, rose 0.11 percentage points to 5.367%. The two-year yield, which reflects market expectations for Fed monetary policy, surged by more than 0.19 percentage points to 4.748%.

[email protected] Song Kyung-jae Reporter