{
  "id": 19465237,
  "title": "Inflation jitters throw a wrench into US Treasury auction as Fed official flags jumbo hike",
  "url": "https://urgent.news/2026/11/11/inflation-jitters-throw-a-wrench-into-us-treasury-auction-as-fed",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-11T07:13:56.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3374041/inflation-jitters-throw-wrench-us-treasury-auction-fed-official-flags-jumbo-hike"
  },
  "original_language": "en",
  "account": "A recent auction of the 10-year US Treasury faced weak investor demand due to soaring inflation expectations and the possibility of aggressive rate hikes from the Federal Reserve, resulting in one of the steepest bond sell-offs in months. China's de-dollarization push to promote the internationalization of its currency may benefit from this development. The US Treasury sold US$42 billion worth of bonds at a yield of 5.02 percent, which was higher than the previous 5.01 percent yield for long-term debt in the secondary market. The incident highlights the challenges faced by the US bond market, which has been grappling with rising funding costs, persistent inflation, and decreasing interest from sovereign holders like China and Japan. The Federal Reserve's Governor Christopher Waller expressed a more hawkish stance, suggesting he would support a 50 basis point rate increase if inflation remains uncontrolled. October's consumer prices exceeded expectations, leading to widespread anticipation of a substantial rate hike from the Fed. The 10-year yield, a key benchmark for mortgage rates, surpassed 5 percent, while the two-year yield increased by 18 basis points, marking the biggest rise in 19 months. The probability of an 85.3 percent chance of a 25 basis point rate hike at the upcoming Fed meeting, according to the CME Group, further underlines the market's sensitivity to these developments. As the US central bank raised interest rates by 0.25 percent in September, the renewed turmoil in US Treasuries strengthens China's argument for reducing its exposure to US bonds as part of diversifying its foreign reserves and promoting the yuan as a global reserve currency. Japan also reduced its holdings in August, possibly to fund interventions in the foreign-exchange market. Higher Treasury yields may create financial strain for US hyperscalers, which have recently faced scrutiny from the government and turned more towards the bond market to fund AI infrastructure investments.",
  "summary": "The latest auction of the 10-year US Treasury drew weak demand from investors after a hot reading on inflation and the prospect of an aggressive rate increase flagged by a Federal Reserve official spurred the most violent bond sell-offs in months. It may also further validate China’s de-dollarisation push to promote the internationalisation of its currency. The batch of the US$42 billion Treasury…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "Bonds reel as hot inflation fuels jumbo Fed hike fears",
        "url": "https://urgent.news/2026/11/11/bonds-reel-as-hot-inflation-fuels-jumbo-fed-hike-fears",
        "published": "2026-11-11T02:06:19.000Z"
      },
      {
        "outlet": "Business Recorder",
        "title": "Bonds reel as hot inflation fuels jumbo Fed hike fears",
        "url": "https://urgent.news/2026/11/11/bonds-reel-as-hot-inflation-fuels-jumbo-fed-hike-fears-19435481",
        "published": "2026-11-11T02:53:07.000Z"
      },
      {
        "outlet": "The Jakarta Post",
        "title": "Bonds reel as hot inflation fuels jumbo Fed hike fears",
        "url": "https://urgent.news/2026/11/11/bonds-reel-as-hot-inflation-fuels-jumbo-fed-hike-fears-19439313",
        "published": "2026-11-11T02:57:30.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}