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NEW YORK – The benchmark 10-year U.S. Treasury yield was above 5% at midday Tuesday, adding pressure to borrowing costs as investors assessed inflation and the outlook for Federal Reserve interest-rate increases.
Tradeweb market data showed the yield at 5.019% at 12:25 p.m. Eastern time on November 10, compared with a previous close of 4.862%. That is an increase of 15.7 basis points. A basis point is one-hundredth of a percentage point.
A separate Cboe 10-year Treasury index data display showed 5.01 at 12:13:14 p.m. Eastern time, with a day’s range of 4.90 to 5.02. The readings are from different timestamps and should not be treated as simultaneous quotes.
The observations confirm that the benchmark was trading above 5% around midday. They do not establish the exact time it first crossed that level, and they are intraday market-data readings, not an official Treasury daily yield-curve release.
Bond prices move in the opposite direction to yields. A rise in the benchmark yield means investors are demanding a higher return to hold the debt. Treasury yields also help shape the pricing of mortgages, corporate borrowing and other long-term financing, although individual loan rates do not move one-for-one with the benchmark.
The midday level marks a further development from JBizNews’s earlier market-opening report. The morning report remains a snapshot of conditions at that time; Tuesday’s new yield readings are a separate update.
The inflation and rate-policy debate remained in focus. In remarks Tuesday morning, Dallas Federal Reserve President Lorie Logan said October’s Consumer Price Index had come in higher than expected and raised concern that personal consumption expenditures inflation could also rise when those data arrive.
Logan reiterated her support for at least two more quarter-point rate increases and said it might be possible to move more rapidly this winter than the FOMC had moved so far this fall. Those are her views, not a new FOMC decision or a promise of a particular December increase.
The yield readings do not show how much of the move was attributable to any one data release or policymaker’s remarks. Intraday prices and yields can change quickly; the figures above are tied to their stated observation times, not a closing-market report.
JBizNews Desk | Markets & Economy
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