Treasuries Remain Lower as Cost of Living Rose in September
Treasuries remained lower after a report showed the cost of living in the U.S. rose in September for a second month, reinforcing investor concern inflation is accelerating amid record stimulus from the Federal Reserve.
U.S. 10-year government bonds declined earlier after two senior German coalition lawmakers said the nation was open to Spain seeking a precautionary credit line from Europe’s rescue fund. The difference between yields on 10-year notes and similar-maturity Treasury Inflation Protected Securities, a gauge of expectations for consumer prices, widened today 2.49 percentage points, above the average of 2.17 percentage points since October 2002.
The benchmark 10-year yield climbed four basis points, or 0.04 percentage point, to 1.70 percent at 8:34 a.m. in New York, according to Bloomberg Bond Trader prices. The yield has climbed from a record low 1.38 percent on July 25.
The consumer-price index increased 0.6 percent for a second month, the Labor Department reported today in Washington. Economists surveyed by Bloomberg had forecast a 0.5 percent advance. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.1 percent, less than projected.