Traders work on the floor of the New York Stock Exchange (NYSE) on Monday, March 9, 2026 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
The yield on the 10-year U.S. Treasury remained above 5% on Friday after October’s producer price index, a measure of wholesale prices, was slightly lower than expected.
Yields, a key measure for mortgages, auto loans and credit card debt, rose 4 basis points to 5.143%. The stock hit a high of 5.174% early on the day.
of 2 year Treasury bill The yield, which is typically sensitive to the Federal Reserve’s short-term interest rate decisions, fell less than 1 basis point to 4.859%. something older 30 year government bond The geopolitical risk-sensitive yield rose more than 4 basis points to 5.472%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The producer price index rose 0.3% in October compared to September, lower than the 0.4% forecast by economists compiled by Dow Jones. But on an annual basis, PPI rose 6.5% over the past 12 months, the largest annual increase since November 2022.
FWDBONDS Chief Economist Chris Rapkey said there were no “encouraging signs” in the inflation report, adding that core PPI, which excludes food, energy and trade services, rose 0.5% in October.
“It’s economics that producer prices lead consumer prices, and now consumers appear to be caught up in a new explosion of factory inflation,” he said.
The move came after the 10-year Treasury yield rose more than 13 basis points to more than 5% in Thursday trading, while the two-year Treasury yield also jumped more than 15 basis points.
Investors are now betting that the US Federal Reserve will raise interest rates next month. According to CME Group’s FedWatch tool, traders are pricing in a 100% chance of a rally at the Dec. 9 meeting. The probability of a 1/4 point increase is currently 89%, and the probability of a 0.5 percentage point increase is approximately 14%.
Energy inflation remains a key part of the puzzle, with oil prices falling for the second time in a week as prospects for a renewed U.S. attack on Iran fade. us west texas intermediate Futures for December delivery fell 0.2% to $88.56 a barrel. brent crude oilThe international oil benchmark rose 0.02% to $95.84.
