U.S. Treasury yields fell on Friday as markets digested Thursday’s higher-than-expected consumer price index reading and kept a close eye on the U.K. economy as the Bank of England’s emergency bond-buying program is due to end. The yield on the 10-year Treasury was at 3.9197%, down by 3 basis points at around 4:40 a.m. ET. It had briefly surpassed the 4% mark on Thursday following the release of the inflation report…. Markets continued to absorb Thursday’s consumer price index reading, which showed that inflation had risen more than expected in September. The price of goods had increased by 0.4% for consumers last month and was up 8.2% from a year ago. The Federal Reserve has been hiking interest rates to push back against persistent inflation, despite investor concerns about this leading to a recession. Analysts are expecting another 75 basis point rate hike to be announced at the central bank’s next meeting in early November.
Source: CNBC – Bonds
