Treasury Yields Soar as Energy-Driven Inflation Concerns Intensify

US Treasury yields rose sharply on October 1st, with the 10-year reaching 5.33% and the 30-year 5.67%, according to TMGM's Daily Market Breakfast.

This marks a seventh consecutive month of rising yields, the longest such streak since 2011, according to Deutsche Bank.

The increase in Treasury yields was driven by energy-driven inflation concerns, which pushed Brent crude up 0.92% to $103.53 a barrel and WTI gained 1.16% to $90.42.

Despite the softer August US inflation data, which saw headline PCE inflation unchanged at 3.4% year-on-year against expectations for 3.7%, Federal Reserve officials continued to stress that inflation remains too high.

Minneapolis Fed President Neel Kashkari said inflation is still around 3%, and that the latest data do not alter his outlook, while Fed Governor Lisa Cook reiterated her commitment to returning inflation to the Fed's 2% goal.