U.S. Treasury Yields Rise Ahead of Key Inflation Data Release

U.S. Treasury yields have risen as investors await the delayed September Consumer Price Index (CPI) report, a critical economic indicator amid the current government shutdown. The 10-year Treasury yield increased to around 4.01%, while the 30-year yield edged higher to about 4.57%, with traders focusing on whether inflation pressures are cooling or intensifying. Economists expect consumer prices to rise by 0.4% monthly, maintaining a 12-month inflation rate near 3.1%, which will influence the Federal Reserve's upcoming decision on interest rates, where a rate cut is nearly fully priced in. Additional concerns include potential new U.S. export restrictions on China and tariff-related price impacts, although core inflation metrics are expected to remain steady. Meanwhile, in Nigeria, treasury bill yields unexpectedly increased due to the Central Bank of Nigeria raising supply, providing investors opportunities for higher returns despite an anticipated slowdown in inflation and recent interest rate cuts. Overall, these developments reflect heightened market sensitivity to inflation data and central bank policies globally.