From CNBC · Michelle Fox,Hugh Leask · · 1m 10s
Treasury yields rise on inflation concerns
The 10-year Treasury yield climbs to 5.15% after producer prices come in lower than expected but remain elevated, signalling fresh inflation ahead.
In brief
The 10-year Treasury yield climbs to 5.15% after producer prices come in lower than expected but remain elevated, signalling fresh inflation ahead. The ten-year Treasury yield rose to five point one five percent on Friday as traders assessed October's producer price report, which showed inflation pressures may…
Yields climb on inflation data
The ten-year Treasury yield rose five basis points to more than five point one five percent on Friday after October's producer price index came in slightly less than expected.
Producer prices signal fresh inflation
October's producer price index rose zero point three percent versus September, less than the zero point four percent expected. But annually, PPI rose six point five percent, the biggest increase since November two thousand twenty-two.
Economist warns of consumer impact
Chris Rupkey, chief economist at FWDBONDS, said there was no silver lining in the inflation report. Core PPI, excluding food, energy and trade services, increased zero point five percent in October.
“It is economics 101 that producer prices lead consumer prices and right now it looks like consumers will be on the hook for a fresh burst of factory inflation.”
Fed rate hike seen as certain
Traders are pricing in one hundred percent odds of a Federal Reserve rate hike at the December ninth meeting, according to the CME Group's FedWatch tool.
The bottom line
The ten-year Treasury yield rose to five point one five percent on Friday as traders assessed October's producer price report, which showed inflation pressures may persist.
