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 NEW YORK (AP) - After a jump in Treasury yields fueled a long-anticipated stock retreat last week, Wall Street will be watching upcoming inflation data to see if its interest rate jitters were justified.
Analysts are split on whether the climbing 10-year Treasury note yield poses a genuine threat of a rate hike by the Federal Reserve, or if its foray above 5 percent has simply been an excuse for investors to lock in profits before resuming the stock market's record-breaking run.
A key factor in deciding whether Wall Street regains its footing or flounders will be this week's reports on producer and consumer costs, and if they suggest inflation is rising fast enough to set a tightening policy back into motion. The Fed has kept the benchmark interest rate on hold at 5.25 percent since last summer, after about two years of gradual increases.
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