Data: U.S. Treasury yields rise, traders bet on a Federal Reserve rate hike in December

U.S. Treasury yields rose on Friday as traders increased bets on a Federal Reserve rate hike in December. The 10-year Treasury yield, a key benchmark for mortgages, auto loans, and credit card debt, rose 2 basis points to 5.1271%. The 30-year Treasury yield, which is more sensitive to geopolitical risks, increased 3 basis points to 5.4602%. The 2-year Treasury yield, which is typically more sensitive to the Fed's short-term rate decisions, fell 1 basis point to 4.8525%. One basis point equals 0.01%, and yields move inversely to bond prices.

Earlier, during Thursday's trading session, the 10-year Treasury yield rose more than 13 basis points and broke above 5%, while the 2-year Treasury yield increased by more than 15 basis points. According to the CME Group FedWatch tool, traders are currently pricing in a 100% probability of a rate hike at the Federal Reserve's meeting on December 9, with a nearly 87% chance of a 25 basis point increase and about a 13% chance of a 50 basis point increase. Energy inflation remains a concern, with oil prices expected to record a second consecutive week of decline, and the likelihood of renewed U.S. action against Iran decreasing. Oil prices fluctuated in early trading on Friday, with December West Texas Intermediate crude futures falling 0.1% to $88.63 per barrel, while Brent crude rose 0.3% to $96.11 per barrel. The October Producer Price Index will be released later on Friday, with the market expecting a month-over-month increase of 0.4%, down from 1.3% in September.