Treasury yields tick up as traders price a December Fed hike as a done deal

The 10-year U.S. Treasury note yield rose 2 basis points Friday, putting the benchmark for mortgages, auto loans and credit card debt at 5.1271%. The longer-dated 30-year bond yield added 3 basis points, now at 5.4602%. The 2-year note, the maturity most sensitive to Fed decisions, moved the other way, slipping 1 basis point to 4.8525%.

Those moves land on top of a bruising Thursday, when the 10-year jumped more than 13 basis points to top 5% and the 2-year soared more than 15 basis points. One basis point equals 0.01%, and yields move opposite to prices.

Investors now treat a December hike as a near-certainty. The CME Group's FedWatch tool shows traders pricing 100% odds of an increase at the Dec. 9 meeting, with roughly 87% betting on a 25 basis point rise and about 13% positioned for 50 basis points.

Energy inflation stayed in the spotlight, with crude on track for its second weekly decline as the prospect of renewed U.S. strikes against Iran recedes. December West Texas Intermediate futures dipped 0.1% to $88.63 a barrel in choppy early trade, while Brent rose 0.3% to $96.11.

Later Friday brings October's producer price index, a key read on wholesale inflation. Economists expect it to show 0.4% growth, a sharp slowdown from the 1.3% logged in September's report.