U.S. 10-Year Yield Slips to 4.93% as August CPI Holds at 3.4%
Updated
Updated · Quartz · Sep 11
U.S. 10-Year Yield Slips to 4.93% as August CPI Holds at 3.4%
3 articles · Updated · Quartz · Sep 11
Summary
The 10-year Treasury yield eased 1 basis point to 4.93% on Friday after briefly hitting 4.979%, its highest level since late 2023.
August CPI rose 0.4% from July and 3.4% from a year earlier, matching July's annual pace and landing in line with expectations, which helped calm a week-long bond selloff.
U.S. stocks climbed more than 1% after the data, but markets still assign a meaningful chance of a Fed rate hike next week as investors weigh higher energy and food costs.
Pressure on longer-dated bonds remains intense despite Treasury's plan to expand buybacks by at least $4 billion, with worries centered on heavy debt issuance, fiscal deficits and U.S. debt above $40 trillion.
That strain has been global: G7 10-year yields rose about 19 basis points on average this week, while the selloff was amplified by Middle East-driven oil spikes that pushed Brent above $108 before it fell near $104.