Bessent Blames September's Hot Inflation on an 'Energy Shock' as Yields Stay High

Treasury Secretary Scott Bessent said September's hotter-than-expected inflation reading reflects an energy shock, arguing that price pressures should ease once the U.S. gets to the other side of the Iran conflict.

Bond yields remain elevated. The 10-year Treasury yield was about 5.07% and the 2-year about 4.72%, while the CME FedWatch tool showed roughly a 15% chance of a Fed rate hike after the October meeting.

Supply data cited by Reuters showed Iran's seaborne crude exports falling from about 230,000 barrels a day to zero in September, a reminder of how closely energy markets and inflation expectations are tied to the conflict.