On Wednesday, yield on Treasury notes, which often rises when investors anticipate tighter central bank policies, rose back toward highs for 2021, near 0.5%, compared with 0.409% at Tuesday’s close.
The U.S. inflation rate reached a 13-year high recently, triggering a debate about whether the country is entering an inflationary period similar to the 1970s.
Yields on shorter-term U.S. government bonds surged after data showed inflation reached a 30-year high in October, reflecting investors’ expectations that Fed will have to raise interest rates more quickly to combat surging consumer prices.
