The US 10-year Treasury yield climbed to 5.15% on Friday after new inflation data came out.
While October's producer price index (PPI) rose just 0.3% for the month, prices are up a hefty 6.5% compared to last year, the biggest annual increase since November 2022.
This keeps the yield above the key 5% line, which can make things like mortgages and car loans more expensive.
Investors expect December Fed rate hike
With these numbers, investors are now almost certain the Federal Reserve will hike rates in December: CME's FedWatch tool even shows full confidence in it.
Chris Rupkey, chief economist at FWDBONDS, pointed out that a stronger core PPI could push consumer prices higher soon.
Meanwhile, markets were choppy in early trading Friday, with Brent crude higher by 0.3% at $96.11 per barrel and US West Texas Intermediate futures for December delivery down 0.1% at $88.63 per barrel.