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LivestreamMenuA trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 19, 2026. Jeenah Moon | Reuters
U.S. Treasury yields declined on Friday as investors weighed hotter-than-expected inflation data and Federal Reserve Chairman Kevin Warsh’s latest comments on interest rates.
The benchmark 10-year Treasury yield fell 1 basis point to 5.074%, and the 30-year Treasury bond yield was little changed at 5.422%. The 2-year Treasury note yield was down 1 basis point to 4.731%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
It’s been a week of strong inflation data, with Thursday’s producer price index showing that wholesale prices jumped 6.3% annually in September, the biggest gain since 2022, according to the Bureau of Labor Statistics. Economists polled by Dow Jones expected a 5.5% increase.
This came after the Wednesday release of the consumer price index, which rose 0.6% for the month and 3.7% annually in September, against estimates of 0.6% and 3.6%, respectively.
The rise has largely been driven by continued inflationary pressure from soaring energy prices amid the ongoing U.S.-Iran war.
The inflation data comes two weeks ahead of the next interest rate decision, with Fed Chairman Warsh sa on Thursday declining to offer any signals as to whether there will be another interest rate hike this month.
“I don’t prejudge meetings. I don’t believe in saying now what I might do at the meetings that we have in the balance of this year,” Warsh said.
Traders are now pricing in an 87% chance that the Fed will hold rates, according to the CME FedWatch Tool.
