Treasury Yields Increase

Published May 15, 2026

U.S. Treasury yields rose early in the week as inflation reports revealed April’s consumer and wholesale prices remained above the Federal Reserve’s 2% target. Yields moved higher toward the end of the week despite the latest employment data showing the labor market remains stable.

On Wednesday, the Bureau of Labor Statistics released April’s producer price index (PPI) which indicated a rise in inflation. The April PPI grew 1.4%, exceeding economists’ forecast of a 0.5% increase. The PPI year-over-year came in at 6.0%, which was also higher than economists’ projections of 4.8% and the highest rate since December 2022.

“Inflation is sticky and accelerating,” said global head of market strategy at TradeStation, David Russell. “The core reading confirms a deeper structural trend, especially in services. The Hormuz crisis is aggravating the problem, but this goes way beyond oil.”

The benchmark 10-year Treasury note yield opened the week of May 11 at 4.36% and traded as high as 4.50% on Wednesday. The 30-year Treasury bond opened the week at 4.94% and traded as high as 5.06% on Wednesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased by 12,000 to 211,000 for the week ending May 9, higher than economists’ expectations of 205,000 claims. Continuing claims increased by 24,000 to 1.78 million.

"The latest jobless claims figures are largely consistent with other labor market data showing a stable-to-improving job market," said lead U.S. economist at Oxford Economics, Nancy Vanden Houten. "The ongoing conflict with Iran could still have some spillover effects on the labor market, but for now the Fed should feel comfortable leaving policy on hold while it monitors inflation."

The 10-year Treasury note yield finished the week of 5/11 at 4.60% while the 30-year Treasury note yield finished the week at 5.12%.