US Treasury yields retreat following volatile reaction to hotter-than-expected September CPI data

US Treasury yields fell after an initial selloff sparked by stronger-than-expected inflation figures, though borrowing costs remain elevated. The 10-year yield retreated to roughly 5.10%, hitting a three-week low after briefly spiking above 5.30%. The Labor Department reported that September Consumer Price Index rose 0.6% month-over-month and accelerated to 3.7% annually, topping forecasts of 3.6%. The data briefly pushed the 2-year yield to a two-week high and raised the probability of an October Federal Reserve rate hike to 40% before expectations eased back to around 33%.