Market News

US two-year yields top 2.0% as December core CPI jumps

12/01/2018 15:44

(ShareCast News) - The cost of living in the US jumped last month, pushed higher by a surge in the cost of used cars and trucks and medical care commodities. That saw the yield on the benchmark two-year US Treasury note tack on three basis points to 2.01%. Headline consumer prices advanced by 0.1% month-on-month in December, according to the Department of Labor, and at 2.1% clip year-on-year. That was in-line with economists' forecasts. At the 'core' level however, prices surged by 0.3% over the month, boosting the annualised rate to 1.8%, as prices for used cars and trucks jumped by 1.4% after increasing by 1.0% in November. Medical care commodities were also dearer, with prices rising by 1.0% versus the prior month. In November, medical care commodities prices increased 0.6%. New vehicle prices also picked-up, gaining 0.6% on the month, although for the past 12 months they were still 0.5% lower.

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