(Updates with market activity and details, analyst comment)
By Ross Kerber
Nov 10 (Reuters) - Traders sent real yields on U.S.
Treasuries to record lows on Wednesday after new consumer price
data reinforced inflation concerns and flattened a closely
watched part of the yield curve.
The yield on 10-year Treasury Inflation Protected Securities
dipped as low as -1.243% and the yield on 30-year
TIPS went as low as -0.608%, both records, in
The moves came after higher-than-expected consumer price
inflation, which could lead to monetary tightening. A report
from the U.S. Labor Department showed prices increased more than
expected in October as the cost of gasoline and food surged,
leading to the biggest annual gain since 1990.
"The market has to do a one-time adjustment on inflation
expectations and that's why you get a day like today," said Gary
Pzegeo, head of fixed income for CIBC Private Wealth.
The benchmark 10-year yield was up 7.7 basis
points at 1.5255%. Increases were higher in the middle of the
curve such as on the five-year note, up 12.2 basis
points at 1.19%.
The two-year note
© 2022 Thomson/Reuters. All rights reserved.