10-Year Treasury Yield Hits 5% After High Inflation Data

The 10-year Treasury yield rose approximately 12 basis points to 5% on Tuesday morning following the release of Consumer Price Index data. The United States Department of the Treasury saw auction yields reach 5.02% as the data indicated that inflation has seeped deeply into the economy.

Core CPI increased by 0.30%, with non-housing super-core services rising 0.45% month-to-month and core goods increasing by 0.39%. The simultaneous rise in both sectors removes a historical offset where goods typically balanced services inflation, thereby increasing overall inflationary pressures.

This shift in economic data poses a significant risk to fixed income valuations as the market reacts to the persistence of widespread inflation.