U.S. Treasury Yields Jump as Inflation Stays Hot, Fed Official Flags Bigger Hike

U.S. Treasury yields surged Tuesday after October consumer inflation came in hotter than expected, pushing the benchmark 10-year yield back above the 5% threshold. A Federal Reserve official suggested a 50-basis-point rate hike may be needed in December. The 10-year yield rose over 14 basis points to 5.004%, while the 30-year yield climbed more than 10 basis points to 5.364%, and the 2-year yield jumped over 20 basis points to 4.755%. October CPI rose 0.4% month-over-month, exceeding the 0.3% forecast, though slowing from September's 0.6% gain. Core CPI, excluding food and energy, increased 0.3% monthly, also above the 0.2% expectation. Fed Governor Christopher Waller said he would support a larger rate hike if inflation remains elevated, while Goldman Sachs Asset Management suggested the tightening cycle could extend into 2027.