From Startup Fortune · · 1m
Treasury Yields Jump After Hot CPI
US bond yields surge as December Fed rate hike odds hit 84-90%.
In brief
US bond yields surge as December Fed rate hike odds hit 84-90%. Treasury yields rose to 4.99% after October CPI showed 0.4% inflation, pricing a December Fed rate hike at 84-90% odds. Originally reported by Startup Fortune.
Treasury yields jump
US bond yields rose to 4.99% after October CPI showed 0.4% inflation.
October CPI report
US consumer prices rose 0.4% in October, above economists' 0.3% forecast.
Fed governor Waller's warning
Core CPI at 0.3% met Waller's warning of a half-point hike.
December Fed hike odds
Odds of a December Fed rate hike rose to 84-90% as 50 basis point move odds jumped to 10-15%.
AI stock valuations impact
A 5% yield hits AI stocks, causing dow, s&p 500 and nasdaq to slip.
Market reaction
Bond market moved 2-year yield up 19 basis points in a single session.
What happens next
December Fed meeting will determine if a quarter-point hike is delivered.
In short
Treasury yields rose to 4.99% after October CPI showed 0.4% inflation, pricing a December Fed rate hike at 84-90% odds.
