U.S. Treasury yields climbed on Tuesday, with the 10-year yield hitting a 2-1/2-month high, after a reading on inflation came in above estimates, extending market expectations for the timeline of rate cuts from the Federal Reserve until later this year.
The consumer price index (CPI) increased 0.3% last month after gaining 0.2% in December as the cost of rental housing jumped, the Labor Department said on Tuesday. In the 12 months through January, the CPI increased 3.1%. Economists polled by Reuters had forecast the CPI would gain 0.2% on the month and 2.9% on a year-on-year basis.
The yield on the benchmark U.S. 10-year Treasury note rose 14 basis points to 4.31% after reaching 4.314%, it’s highest level since Dec. 1. The yield on the 30-year bond rose 9.2 basis points to 4.4618% after climbing to 4.465%, also the highest since Dec. 1.
Chuck Mikolajczak | Yahoo Finance