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investors send yields lower after Sept. PPI
CNBC • • business
Key Points:
- Treasury yields fell sharply on Thursday as investors moved away from technology stocks and sought the safety of bonds following higher-than-expected wholesale inflation data.
- The 10-year Treasury yield dropped over 10 basis points to 5.089%, while the 30-year yield fell more than 9 basis points to 5.428%, and the 2-year yield declined over 4 basis points to 4.757%.
- Wholesale prices surged 6.3% annually in September, the largest increase since 2022, exceeding economists' forecasts of 5.5%, while consumer prices also rose more than expected in September.
- Investors' concerns about rising inflation and interest rates, as well as their potential impact on the AI spending boom, led to a sell-off in tech shares and increased demand for bonds.
- Despite the data, market expectations remain for at least one more Federal Reserve rate hike by the end of the year, with growing odds of rates rising above the current 3.75%-4.00% range.
