U.S. Treasury yields moved higher Tuesday as investors weighed October’s inflation report alongside comments from Federal Reserve Gov. Christopher J. Waller about December policy, Anadolu Agency reported.
Anadolu reported the 10-year Treasury yield at 4.954%, up 8.8 basis points. The two-year yield added 13 basis points to 4.677%, while the 30-year yield gained 6.5 basis points to 5.321%.
The U.S. Bureau of Labor Statistics (BLS) said the Consumer Price Index for All Urban Consumers (CPI-U) rose a seasonally adjusted 0.4% in October after a 0.6% gain in September. The core index, which excludes food and energy, advanced 0.3%, matching September. Anadolu said economists had expected 0.3% overall inflation and 0.2% for the core measure.
In a Nov. 10 speech, Waller said his own assessment was that a core result around 0.3% or above could lead him to weigh a 50-basis-point increase in December. He said a quarter-point move in that situation could threaten the Fed’s credibility. October’s core reading was at the level he had identified before the report.
The Federal Open Market Committee (FOMC) kept its federal funds target range at 3.75% to 4% in October, as described in EconoTimes’ earlier coverage of the rate hold. The Fed’s calendar lists Dec. 8-9 as the next scheduled FOMC meeting.
