US 10-Year Treasury Yield Surges Past 5% Amid August Inflation Data
The US 10-year Treasury yield broke through the 5% threshold for the first time since 2024, fueled by August's inflation figures. The benchmark yield surged from 4.942% to 5.005% within minutes of the Labor Department releasing the Consumer Price Index data.
The annual Consumer Price Index remained unchanged at 3.4%, while the core CPI reading on a monthly basis exceeded expectations at 0.3%. This came after Thursday's Producer Price Index data showed 5.4% growth, surpassing analyst projections.
Market probability for a Federal Reserve interest rate increase climbed to 88% following the inflation report, up from 71% earlier in the day. The European Central Bank implemented a quarter-percentage-point rate increase on Thursday, contributing to global monetary tightening.