10-Year Treasury Yield Jumps to 4.93% on Hot Inflation

U.S. stocks fell on Tuesday after the 10-year Treasury yield jumped to 4.93% following a hotter-than-expected October inflation reading, according to YahooStocks0. The move strengthened expectations for a potential Federal Reserve rate hike next month, pushing the odds of a December rate increase to 89%.

Long-dated bond yields, which serve as a benchmark for borrowing costs, were already climbing prior to the inflation report. Federal Reserve Governor Chris Waller stated ahead of the data release that he would leave the door open for a 50 basis point increase depending on inflation trends.

Treasury Yields and Commodities

Following the inflation print, the 30-year Treasury yield touched 5.3%, while the 2-year yield jumped 14 basis points to 4.69%. In the energy markets, Brent crude oil futures dropped 3% to near $89 per barrel, and WTI declined to hover around $84.50 per barrel.

Meanwhile, semiconductor and tech stocks faced downward pressure. Shares of Nvidia extended declines following remarks by President Trump regarding the company's CEO, while the broader tech sector fell alongside the wider stock market sell-off.

Key facts

• The 10-year Treasury yield rose to 4.93% following the October inflation reading.
• The odds of a December interest rate hike stood at 89% on Tuesday.
• The 30-year Treasury yield touched 5.3% while the 2-year yield jumped 14 basis points to 4.69%.
• Brent crude oil futures dropped 3% to near $89 per barrel.
• Stocks declined on Tuesday amid a broader market sell-off and rising borrowing costs.