On Friday, Treasury yields rose, with the 10-year U.S. Treasury note yield climbing 2 basis points to 5.1271% and the 30-year Treasury bond yield increasing by 3 basis points to 5.4602%. This uptick follows a significant rise in yields from the previous day, where the 10-year yield surged over 13 basis points.
The market is now pricing in a 100% probability of a rate hike at the Federal Reserve's meeting on December 9, with nearly 87% odds for a 25 basis point increase. The 2-year Treasury note yield, sensitive to short-term rate changes, fell slightly by 1 basis point to 4.8525%. Additionally, energy inflation remains a concern, with oil prices fluctuating; U.S.
West Texas Intermediate futures were down 0.1% at $88.63 per barrel, while Brent crude rose 0.3% to $96.11. Investors are also awaiting the release of October's producer price index, which is expected to show a 0.4% increase, down from 1.3% in September, indicating potential shifts in inflation trends