2018.02.1521:23:00UTC+00US 2-Year Yield Hits 9-Year Peak as Inflation Fears Persist

U.S. government debt yields reached fresh highs Thursday amid of a slew of new economic data that provided more evidence of inflation pressure.

The 2-year Treasury yield notched a peak of 2.213 percent, its highest level since September 2008, when the 2-year yielded as high as 2.217 percent. The yield on 10-year U.S. Treasury hit a new four-year peak of 2.944 percent, above the levels which fueled a stock market sell-off in recent weeks.

The 5-year yield also hit a high, touching 2.687 percent, its highest level since April 2010 when the 5-year yielded as high as 2.702 percent.

The yield on the benchmark 10-year Treasury note fell from its highs to 2.906 percent, while the yield on the 30-year Treasury bond was also off session highs at 3.155 percent. Bond yields move inversely to prices.

The increase comes amid inflation data, which showed that US consumer prices had risen faster in January than most economists had anticipated. The result was viewed as the latest sign that long-dormant inflation is increasing, raising concerns that the US economy could overheat as the impact of the biggest package of tax cuts in a generation feeds through to prices.