What moved the market
Oil back above $100 per barrel grabbed the wheel, reviving worries that inflation could stay sticky even after a calm wholesale print. The 10-year Treasury note yield rose more than 6 basis points to 4.906%, and the 30-year bond added over 5 basis points to 5.337%. Quick refresher: one basis point is 0.01%, and when yields climb, bond prices drop. The 10-year is the reference point for mortgages, auto loans and credit card rates, so that move hits the real economy fast.
Where yields stood
The 2-year note, which reacts most to near-term Fed moves, reached 4.501% at its intraday high. Snapshot levels showed the U.S. 10 Year Treasury at 4.924% (+0.084), 1 Month at 3.753% (+0.03), 1 Year at 4.245% (+0.078), 2 Year at 4.527% (+0.10), 30 Year at 5.347% (+0.061), 3 Month at 3.939% (+0.039), and 6 Month at 4.081% (+0.042). The 10-year marked its highest level since November 2023, and the 2-year's peak was the strongest since July 2023.
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Inflation data and what comes next
On Wednesday, the climb in yields began following remarks from Treasury Secretary Scott Bessent that the department plans to repurchase $6 billion in longer-dated government bonds. The move extended into Thursday, with U.S. crude surpassing $100 amid worry that fighting between the U.S. and Iran in the Middle East could drag on. Meanwhile, wholesale prices rose 0.4% in August, in line with Dow Jones consensus, and core prices excluding food and energy increased 0.2%, a bit under the 0.3% forecast. With producer prices out and the 10-year tagging multiyear highs, attention now shifts to Friday's consumer inflation release and next week's Federal Reserve rate decision.
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