TREASURIES-U.S. yields rise as market anticipates faster inflation - NewsBreak

Home > Business
By Megansoto in Business
Updated 2 years ago

(Adds Treasury auction results) By Herbert Lash NEW YORK, Oct 21 (Reuters) - U.S. Treasury yields rose on Thursday as a tighter labor market pointed to a recovering economy that renewed questions about the pace of inflation and when the Federal Reserve will raise interest rates. Two key market measures of future inflation based on five-year and 10-year U.S. Treasury breakeven inflation rates jumped on Thursday, hitting highs last seen in 2012. Yields on U.S. Treasuries notes also rose, with the benchmark 10-year Treasury rising 4.5 basis points to 1.680%. The number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market. Traders are in the process of reassessing their outlook on monetary policy as primary dealers fill out the Fed's survey of their market expectations, said Steven Ricchiuto, U.S. chief economist at Mizuho Securities USA LLC. People are worried the Fed's tightening process will begin earlier tha

treasuries-u-s-yields-rise-as-market-anticipates-faster-inflation-newsbreak