September CPI Preview: Why the 10-Year Treasury Yield Stays Above 5%

Headline CPI runs hot on gasoline; the 10-year’s 5.24% is a long-end problem a soft core print won’t fix.

By Dorian

The Fed hiked in September with core CPI at 2.4%. Since that hike, the 10-year Treasury yield has climbed 23 basis points while the 2-year moved 6. Wednesday’s CPI tests the Fed’s call, and even a clean answer only reaches the front end of the curve.

Therefore this is your problem now.

You are holding the US stocks with the 10-year at 5.24% and t…