Macro EconomyMedium•14 October 2026•
1 min read
US Treasury Yields Surge as Core CPI Exceeds September Forecasts
Key Facts
1US Core CPI rose 0.3% in September, exceeding market consensus and fueling inflation concerns.
US Core CPI rose 0.3% in September, exceeding market consensus and fueling concerns over persistent inflation. Seeking Alpha reported that the data triggered a surge in US Treasury yields as investors adjusted their expectations for the interest rate trajectory.
The surprise increase in core inflation, which excludes volatile food and energy costs, led markets to price in a 50% chance of further monetary tightening by the Federal Reserve this month. This shift follows the release of the FOMC minutes on October 7, 2026, and highlights ongoing challenges in returning inflation to target levels.