US yields jump after 3.7% inflation reading; gold slips below $4,200
What's new: Futures now price a 43.7% chance of an Oct. 28 Fed rate hike, up from 22.1% a day earlier.
Treasury yields climbed and gold fell after September US inflation came in hotter than expected, reinforcing bets that the Federal Reserve may raise rates again this month. The consumer price index rose 3.7% from a year earlier, above the 3.6% estimate, while core inflation was 2.6%, also topping forecasts. The 10-year Treasury yield rose more than 7 basis points to 5.289%, its highest since Oct. 8, and the 2-year yield gained more than 10 basis points to 4.895%. Spot gold dropped 0.7% to $4,167.14 an ounce after earlier trading near a one-week high, as higher yields and a firmer rate outlook weighed on bullion.