Treasury yields slide as investors flee to safety of bonds amid tech rout

Treasury yields dropped Thursday, as investors cashed in some technology shares and fled to the safety of bonds following the latest inflation data. The benchmark 10-year Treasury yield last fell more than 13 basis points to 5.056%, as did the 30-year Treasury bond yield to 5.385%. The 2-year Treasury note yield was more than 5 basis points lower to 4.745%. One basis point is equal to 0.01%, and yields and prices move in opposite directions. Wholesale prices jumped 6.3% annually in September, the biggest gain since 2022, according to the Bureau of Labor Statistics. Economists polled by Dow Jones were forecasting an advance of 5.5% annually. That comes on the heels of the latest consumer price index that came in hotter than expected. The measure of goods and services costs across the U.S. economy rose 0.6% monthly and 3.7% on an annual basis. The consensus forecast was for gains of 0.6% and 3.6%, respectively. Investors rotated into bonds amid a broader flight to safety, as growing fears of higher inflation and interest rates, as well as their effect on the AI spending boom, had investors dumping shares of high-flying technology companies. The data did little to change interest rate expectations, with fed funds futures pricing in at least one more quarter-point raise by the end of the year, according to the CME FedWatch Tool. The likelihood of that scenario has risen sharply over the last month. Correction: A previous version of this article misstated how traders are pricing the Fed's next interest rate decision.