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10-year Treasury yield hits 1.75% following hot inflation reading

The 10-year U.S. Treasury yield hit 1.75%, after an inflation report showed that consumer prices rose at their fastest pace since 1982 in the year to December.

The yield on the benchmark 10-year Treasury note rose by 3 basis points to 1.7571% at 4 a.m. ET. The yield on the 30-year Treasury bond climbed 2 basis points to 2.0985%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

The consumer price index, released Wednesday, grew by 7% in the 12 months to December. On a monthly basis, CPI increased 0.5%. Economists expected the consumer price index to rise 0.4% in December, and 7% on a year-over-year basis, according to Dow Jones. 

The December producer price index, another gauge of inflation, is due to be released at 8:30 a.m. ET on Thursday.

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The number of jobless claims filed during the week ended Jan. 8 is also due out at 8:30 a.m. ET. Economists polled by Dow Jones forecast that 200,000 people filed for unemployment, down from the previous week’s 207,000.

Meanwhile, Federal Reserve Governor Lael Brainard is due to testify before the U.S. Senate for her nomination hearing to the role of the central bank’s vice chair.

Auctions are scheduled to be held for $50 billion of 4-week bills, $40 billion of 8-week bills and $22 billion of 30-year bonds.

— CNBC’s Maggie Fitzgerald contributed to this market report.


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