10-year Treasury yield jumps as September core inflation is hotter than expected

The 10-year Treasury note yield rose on Tuesday following the latest U.S. inflation print.

The Consumer Price Index rose 3.6% year over year in September, higher than the Dow Jones consensus estimate of 3.7%. Core inflation, excluding food and energy prices, came in at 2.6% on an annualized basis, versus 2.5% consensus estimate.

The yield on the 10-year Treasury note — the main benchmark for mortgages, auto loans, and credit card debt —jumped than 2 basis points to 5.27%.

The longer-dated 30-year U.S. Treasury yield — which tends to move on geopolitical events — was nived points at 5.564%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely.

Deutsche Bank analysts noted Wednesday that the CPI comes just two weeks before the Fed's next interest rate decision.

"Any surprises either way will help shape the narrative going into the next Fed meeting, as we don't get the PCE inflation readings (which they officially target) until the day after the next decision," the analysts said.

Investors also await the September reading for the producer price index, retail sales data and initial jobless claims figures, all due on Thursday.