The U.S. 10-year Treasury yield fell 22 basis points to 5.09% by Oct. 16, while annual consumer inflation accelerated in September, putting two market signals in contrast.
The Treasury’s daily par-yield curve recorded a 5.09% rate on Oct. 16; its Oct. 5 reading was 5.31%. A basis point is one-hundredth of a percentage point. The series uses indicative market bids sampled around 3:30 p.m. ET.
The Treasury curve put the rate at 5.10% on Oct. 15 and 5.19% on Oct. 14, readings also covered in EconoTimes’ earlier report. A bond’s yield expresses its return in annual terms. In secondary trading, an existing bond generally has a lower yield when its market price is higher.
The Bureau of Labor Statistics (BLS) said the Consumer Price Index (CPI) was 3.7% higher in September than a year earlier, after a 3.4% annual increase in August; prices also advanced 0.6% from August to September. Core CPI, which excludes food and energy, reached 2.6% in the year through September, compared with 2.4% in August. The energy index climbed 20.4% over the year, while gasoline prices were 34.2% higher year over year and rose 9.1% in September; the BLS released the figures on Oct. 14.
The Federal Reserve raised its target interest rate range by a quarter percentage point on Sept. 16, to 3.75%–4%.
