U.S. consumer prices rose 0.4 percent in October, hotter than the 0.3 percent economists expected, in a Bureau of Labor Statistics report released on Tuesday, November 11. Core prices rose 0.3 percent for a third straight month, above the 0.2 percent forecast, and food prices rose 0.5 percent. No annual inflation rate was published, because a federal shutdown in October last year prevented collecting the year-over-year data. Bond markets reacted fast. The 10-year Treasury yield climbed above 5 percent on Tuesday, the 2-year yield jumped about 18 basis points to 4.73 percent in its biggest one-day rise since April 2025, and the 30-year yield rose to about 5.35 percent.
Hours before the report, Fed Governor Christopher Waller, speaking in London, leaned toward a quarter-point December increase but said a 50 basis point hike should be considered if October core inflation came in near 0.3 percent or higher. It did. The Fed held its benchmark rate at 3.75 percent to 4 percent on October 27 to 28, and its final meeting of the year runs December 8 to 9, with the decision on December 9. Traders put the chance of a December hike at nearly 100 percent, up from about 84 percent before the report, and the odds of a half-point move rose to around 10 percent from near zero. Stocks fell on Tuesday, with the Dow down 0.30 percent, the S&P 500 down 0.38 percent and the Nasdaq down 0.74 percent, then rebounded on Wednesday. October jobs data, released November 6, showed employers added 165,000 jobs, well above the roughly 59,000 expected, and unemployment eased to 4.1 percent.
The 10-year yield matters because it is the benchmark for mortgage rates, auto loans and many corporate bonds. A December hike would likely push credit card and other variable borrowing costs higher, while savers could see slightly better returns. The next tests come soon, with wholesale inflation, the PPI, due Friday, and the PCE index, the Fed’s preferred gauge, later in November. The photo in this video is a file photo of the U.S. Treasury Building in Washington, D.C., published via Wikimedia Commons under a CC BY-SA 4.0 license. It is labeled as a file photo on screen and is not presented as current event footage. The other screens are original Zark News graphics and are labeled as a Zark News illustration.
Full story: https://zarknews.com/hot-october-inflation-pushes-10-year-treasury-above-5-as-feds-waller-floats-a-half-point-december-hike/
Sources: Reuters; Bloomberg; CNBC; Bureau of Labor Statistics • November 11, 2026. Zark News illustration. File photo: U.S. Treasury Building, Washington, D.C. Photo via Wikimedia Commons (CC BY-SA 4.0). Video: Zark News.
