Slightly Higher-than-Expected US CPI... Rise in Treasury Yields and Dollar

The US Consumer Price Index (CPI) for September slightly exceeded expectations, leading to a rise in government bond yields and the value of the dollar.

On the 12th (local time) in New York City, the 10-year Treasury yield rose about 13 basis points from the previous day to 4.70%. The 2-year Treasury yield increased by about 7 basis points to 5.07%.

The bond market reacted as the September CPI rose 3.7% year-on-year, slightly above the forecast of 3.6%. The dollar also strengthened. The dollar index, which compares the US dollar against six other currencies, rose 0.85% that day.

However, the core CPI, closely watched by the Federal Reserve (Fed), increased 4.1% year-on-year, in line with expectations. The rate of increase also slowed compared to the previous month (4.3%).

Stuart Cole, Equity Capital Economist, analyzed, "The CPI results alone are not sufficient to conclude that the Federal Open Market Committee (FOMC) will tighten again in November."

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