Treasury Yields Climb for Seventh Session; 10-Year Hits 5.29%, Highest Since 2002

Treasuries erased early gains and closed lower Wednesday, pushing the benchmark 10-year yield up 4 basis points to 5.29 percent — its highest close since May 2002 and a seventh straight session of gains. Bonds initially rallied after Commerce Department data showed U.S. consumer prices rose less than expected in August on both a monthly and annual basis. The reading trimmed rate-hike odds for next month to 37.1 percent from 50.9 percent Tuesday, according to CME Group's FedWatch Tool. Buying faded as analysts said soft inflation alone is unlikely to deter the Federal Reserve given labor-market strength. ADP reported private-sector employment jumped by 90,000 jobs in September, exceeding the 70,000 economists expected, after a downwardly revised 36,000 gain in August. Annual consumer price growth remains above the Fed's 2 percent target.