U.S. Treasury Yields Continue to Decline, Hitting New Lows

U.S. Treasury yields dropped as the latest inflation data revealed a slower pace of price increases in October. The 10-year Treasury yield fell by nearly 18 basis points to around 4.46%, while the 2-year Treasury yield slid 20 basis points to 4.8%. The October consumer price index remained unchanged month over month, with core CPI up 0.2% when excluding food and energy. The report indicates a positive sign for the Federal Reserve's efforts to bring inflation back to its 2% target without causing a recession. The options market now implies a 0% chance of a rate hike in December and a negligible 4.1% chance for a January hike.