Treasury yields climb after stronger-than-expected inflation rise

• February 14, 2018
• realestate
• Announcements, Business & Markets, Real Estate, Real Estate Finance, Your Real Estate Life

Treasury yields rose after a stronger-than-expected rise in the January consumer price index Wednesday. The 10-year note yield climbed 2.2 basis points to 2.862%, after sitting as low as 2.819%. The 2-year note yield was up 2.1 basis points to 2.127%, while the 30-year bond yield rose 0.8 basis points to 3.136%.

Consumer price index for January rose 0.5%, and its core gauge, stripping out volatile food and energy prices, rose 0.3%. Economists were forecasting an 0.4% increase in CPI, and an 0.2% gain in core CPI. Investors have cited wage gains, a weak dollar, fiscal stimulus and a tight labor market for stoking inflationary pressures. The Federal Reserve, emboldened by signs of price growth, may deliver three to four rate hikes this year. Traders in the fed fund futures market are pricing in more than a 50% chance of three rate increase in 2018, according to CME Group data.