Bond Report: Longer-dated Treasury yields move lower after stronger-than-expected U.S. inflation data

Long-end U.S. Treasury yields moved lower on Wednesday, reversing course after the release of September’s stronger-than-expected inflation data, indicating that bond traders see the risk of a policy error by the Federal Reserve down the road.The widely followed spread between two- and 10-year rates also narrowed in early morning trading.

What are yields doing?What’s driving the market?

U.S. consumer prices rose at a 5.4% year-over-year pace in September and stayed at a 30-year high, according to data released on Wednesday….