+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

The 10-year hits its highest level since January 2014 after CPI tops estimates

Feb 14, 2018, 19:12 IST

A trader signals an offer in the Standard & Poors 500 stock index futures pit at the CME Group February 20, 2009 in Chicago, Illinois.Getty Images

Advertisement

US Treasury yields are spiking after Wednesday's consumer price index report showed inflation rose quicker than expected in January.

The report released by the Bureau of Labor Statistics showed consumer prices jumped 2.1% year-on-year in January. Core CPI, which strips out volatile food and energy costs, rose 1.8%. Wall Street economists were expecting respective prints of 1.9% and 1.7%.

Post-data selling has Treasury yields up almost 5 basis points in the belly of the curve. Here's a look at the scoreboard as of 8:35 a.m. ET:

  • 2-year +3.9 bps @ 2.143%
  • 3-year +4.6 bps @ 2.353%
  • 5-year +5.3 bps @ 2.594%
  • 7-year +5 bps @ 2.791%
  • 10-year +4.2 bps @ 2.871%
  • 30-year +3.4 bps @ 3.145%

The more than 4 bp rise in the 10-year yield has it at the higest levels since January 2014. Traders have been selling Treasuries in droves as of late amid fears that rising inflation will cause the Federal Reserve to raise rates quicker than anticipated.

Advertisement

At its February meeting, the central bank said it excpected to raise rates three times in 2018, however, many market participants now think there could be a fourth hike this year.

Wednesday's selloff has had little imapct on the yield curve as the 2-10-year spread trades little changed near 73 bps.

NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

Next Article