U.S. Treasury yields topped 2% on Thursday after key inflation data showed higher-than-expected price pressures.
The 10-year Treasury note surged to 2.035%, breaching the 2% level for the first time since August 2019. Meanwhile, the 2-year Treasury bond continued to increase by 26bps and topped 1.6%, marking the biggest 1-day move since 2009.
St. Louis Fed President James Bullard statement also pushed the yields higher as well. He told Bloomberg that he was open to a 50bps rate hike in March and a full percentage point by July.
U.S. consumer price index jumped by 7.5% in January, higher than the forecast of 7.3% by economists, while representing the fastest pace since 1982. The rise in consumer price followed a 7% annual gain in December.
Shelter is the single biggest player of CPI (33% of Index) with rents soar 18% over the last year, while home prices jumped 19%.
