US treasury yield hovers at 10-day high

The yield on the benchmark ten-year Treasury note hovers just shy of ten-day high of 2.44% after the data released in the US showed inflation in 2016 rose at a fastest rate in 2016.

The yield clocked a high of 2.44% yesterday and was last seen trading around 2.42%. Meanwhile, at the short-end of the curve, the two-year yield, which represents short-term inflation/interest expectations, was up 2.4 basis points at 1.217%.

Higher inflation could force the Fed to hike rates at a faster rate, unless wage growth keeps up with rising costs.