U.S. Treasury yields fall as tech rout drives bond demand

U.S. Treasury yields fell sharply Thursday, reversing a spike driven by hotter-than-expected inflation data, as safe-haven demand from a global tech stock rout outweighed rate-hike fears. The benchmark 10-year yield dropped 1.6% to 5.104% after reaching 5.333% Wednesday. Wednesday's consumer price index report for September came in stronger than forecast, boosting bets on a Federal Reserve rate hike, with markets pricing a 70.6% chance of a 25-basis-point increase in December. However, bets on an October hold remained intact as the data only slightly exceeded expectations. A widespread selloff in technology and artificial intelligence stocks, including an 8% plunge in South Korea's KOSPI triggering a circuit breaker, drove investors into bonds and gold. Gold rebounded 1% as concerns over rising borrowing costs hit heavily leveraged tech companies.