NEW YORK, Dec 10 — Treasury yields rose and Wall Street stocks fell yesterday after data on US producer prices raised conflicting views, stirring hope of moderating inflation but also fears the Federal Reserve will need to keep interest rates higher for longer
Fed policymakers are expected to raise rates by 50 basis points next Wednesday at their last meeting of the year, to a range of 4.25 per cent to 4.50 per cent, which would mark a slower pace of rate increases. US stocks earlier pared losses after the University of Michigan’s preliminary reading on consumer sentiment showed an improvement to 59.1 in December from 56.8 the prior month.
Treasury yields rose, suggesting higher rates ahead for the long term, with the benchmarket 10-year yield up 10.2 basis points to 3.595 per cent.