Benchmark 10-year yield climbs to 4.954%, while 2-year yield rises 13 basis points as investors weigh prospects of further monetary tightening
US Treasury yields surged on Tuesday as October inflation data came in higher than anticipated and comments from Federal Reserve Governor Christopher Waller fueled speculation regarding a more aggressive interest rate hike in December.
The benchmark 10-year Treasury yield climbed 8.8 basis points to reach 4.954%, while the 30-year yield saw an increase of 6.5 basis points, settling at 5.321%.
The yield on the two-year Treasury note, which is highly reactive to shifts in Federal Reserve policy expectations, rose 13 basis points to 4.677%.
<a In that case, I believe a 50 basis point hike in the policy rate should be considered at the December meeting," Waller said.
He cautioned that restricting the increase to 25 basis points under such conditions could potentially undermine the central bank’s credibility.
The more than doubling the 65,000 forecast.
The combination of a resilient labor market and persistent inflationary pressures has stoked fears of additional monetary tightening by the Fed, driving Treasury yields upward.
