U.S. Treasury Yields Climb After April Inflation Is Higher Than Expected

The consumer price index, which excludes volatile food and energy groups, rose 0.6 percent in April from the previous month, well above the expected 0.4 percent gain for core prices. .


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David Paul Morris / Bloomberg News

US Treasury yields rose on Wednesday after new data showed inflation in April was higher than analysts expected.

Yields rose as bond prices fell, which fell overnight but spiked shortly after the Labor Department said the consumer price index, which excludes volatile foods and energy, rose 0 .6% in April from the previous month. That’s higher than the 0.4 percent increase in so-called core prices that economists predicted as surveyed by The Wall Street Journal.

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In recent trading, the yield on the benchmark 10-year US Treasury note was 3.028%, according to Tradeweb, up from 2.946% shortly before the data release and 2,990% late Tuesday.

The two-year yield, which is more sensitive to the short-term outlook on interest rates set by the Fed, rose to 2.713% from 2.608% before the data and 2.623% on Tuesday.

Wednesday’s data came as an unwelcome surprise for investors, who seem in recent days to be warming up to bonds again after a brutal few months marked by worries. fear escalation about inflation and the Federal Reserve’s response.

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The 10-year yield was steady on Friday at 3.124%, its highest close since November 2018 and near its highest level in more than a decade. It then fell earlier this week, amid a sharp drop in risk assets and hopes that inflationary pressures could ease.

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Edmund DeMarche

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