U.S. Treasury yields advanced Thursday, taking the 10-year benchmark above 5% as markets assessed inflation and oil-price gains alongside expectations for more Federal Reserve (Fed) rate increases.
CNBC reported that the 30-year Treasury bond yield reached 5.40%, up more than five basis points, while the two-year yield stood at 4.843% after rising more than 11 basis points. The 10-year note gained more than seven basis points to 5.068%. CNBC described the 10-year yield as a reference for borrowing costs on mortgages, auto loans and credit-card debt.
CNBC linked crude’s gains to renewed concerns about a prolonged Middle East conflict after President Donald Trump said, “We don’t need a deal with Iran.” West Texas Intermediate (WTI) futures advanced 0.4% to $86.86 a barrel, while Brent crude rose about 1% to $93.60, CNBC reported.
The October consumer price index (CPI) reading released Tuesday exceeded forecasts. EconoTimes previously covered the rise in Treasury yields after the inflation report. CNBC reported Goldman Sachs added a quarter-percentage-point rate increase to its March forecast on Wednesday. CME Group’s FedWatch tool showed traders pricing in a December increase, with the odds of a half-point move at about 13%.
The National Association of Realtors said the October total for existing-home sales was the smallest recorded in more than 16 years. Chris Rupkey, chief economist at FWDBONDS, said higher rates were worsening the housing correction.
The October producer price index, a measure of wholesale prices, was forecast to show monthly growth easing to 0.4% from September’s 1.3%, CNBC reported. The report was due Friday.
