Treasury Yields Reach New Highs Amid Nasty Rumors

With friends like the bond market, who needs enemies?

Despite a Consumer Price Index in line with expectations, Treasury issues finished the day lower, pushing most yields to new highs for the year.

Initially, bonds rose in price on the news that the September CPI gained 0.4% overall and 0.3% at its core, which excludes food and energy prices. Those increases matched the average forecasts of economists polled by Reuters. The CPI is the government's broadest measure of inflation, and the fact that it didn't greatly exceed expectations, as the narrower Producer Price Index did on Friday, allowed hope that the Fed won't hike interest rates again at its next meeting, Nov. 16 ...