US Treasury Yields Spike as Inflation Concerns Impact Fed Policy

US Treasury yields surged as concerns over sticky inflation led to a reevaluation of the Federal Reserve's policy. The spike in yields prompted Fed policymakers to reconsider their plans for another rate hike this year. The market's worry about the impact of inflation on the Fed's policy was reflected in the weak demand for Treasury bonds at auction. US consumer prices rose in September, driven by a surge in rental costs, further fueling expectations that the Fed will leave rates unchanged next month. The rise in yields and persistent US inflation led to a decline in stocks, with the Dow, S&P 500, and Nasdaq all experiencing losses. The uncertainty surrounding the Fed's monetary policy trajectory is causing volatility in the US Treasury market as investors try to gauge the central bank's next move.