FX.co ★ US 10-Year Yield Rises After Hot CPI

The yield on the 10-year US Treasury note climbed to around 4.95%, extending its rebound from a nearly two‑month low of 4.84% reached on November 5th. The move followed stronger‑than‑expected inflation data, which reinforced expectations that the Federal Reserve will implement multiple additional rate hikes in the current tightening cycle.

Both headline and core consumer prices for October rose more than anticipated, underscoring how surging energy costs are feeding through into core components of an economy that remains resilient. These data came on the heels of hawkish remarks from Fed Governor Waller, who backed a 25‑basis‑point rate increase in December and left open the possibility of a larger move if inflation exceeds the central bank’s projections.

Treasury yields across the curve had already been recovering earlier in the week, as risk appetite improved after a brief flight to safety triggered by the Democratic Party’s gain of congressional control. That political shift prompted markets to reassess the rally in the tech sector, which has been a key driver of investment in the US economy.