Wednesday’s US consumer price index (CPI) reading was hotter-than-expected,
Higher inflation could dampen consumer demand and affect the Fed’s timeline
to taper asset purchases. US stocks fell, and Treasury yields spiked.
US inflation jumped a more-than-expected 6.2% yoy in Oct, the fastest pace
since Dec 1990. Core consumer prices accelerated to 4.6%. On a monthly
basis, CPI climbed 0.9%, more than double Sep's 0.4%.
The Dow Jones Industrial Average lost 240.04 pts, or 0.66%, to close at
36,079.94. The S&P 500 index fell 0.82%. The tech-heavy Nasdaq Composite
The yield on the 10-year Treasury note notched up 11.36 basis points (bps) to
1.5493%. The five-year breakeven rate on Treasury Inflation-Protected
Securities (TIPS) jumped about 14 bps to around 3.13%, a record high.