Ten-Year Yield Hits Highest Point Since November

On Friday, U.S. Treasury yields increased as worries about persistently high inflation and the possibility of a protracted period of tighter Federal Reserve policy increased.

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Before trading lower, the yield on the 10-year Treasury hit its highest point since November, peaking at 3.929%. At 3.836%, it was last down roughly 1 basis point. 2 Year Treasury yield also hit levels that had not been seen in three months; it was last trading at 4.628%, up 1 basis point.

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One basis point is equal to 0.01%, and the connection between yields and prices is inverted.

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Inflationary developments and upcoming Fed monetary policy decisions were raised by Thursday's producer price index reading for January.

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A higher than expected reading for the producer price index for January was released on Thursday, causing investors to worry about inflationary developments and future monetary policy decisions by the Federal Reserve rise by 0.4%.

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There was a larger-than-expected increase in consumer inflation in January as a result of data that was released earlier this week, which showed that consumer prices rose by 0.5%.

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After the Fed released the data on Thursday, several speakers hinted at further interest rate hikes. The central bank is using rate increases to cool and reduce inflation in order to calm the economy. As a result of their concern that high interest rates will lead to the U.S. economy contracting, a lot of investors have been hoping that the central bank will stop raising interest rates this year.