Stocks, debt yields slip on biggest US inflation hike in 13 years

 Stocks on Wall Street at first took the CPI data in stride, bidding up technology stocks that typically thrive with low interest rates

By Herbert Lash and Tom Arnold

NEW YORK/LONDON (Reuters) -Bond yields jumped and global share prices slipped after posting new highs on Tuesday as the biggest hike in U.S. inflation in 13 years rattled investors who fear rising interest rates could end a stock market rally that has doubled prices from 2020 lows.

The yield on U.S. Treasury debt initially fell on news the U.S. consumer price index in June jumped 5.4% year over year, the largest gain since August 2008, the Labor Department said.

But a weak Treasury auction sparked a 4.7-basis-point jump in the benchmark 10-year note to 1.41% after initially falling to 1.343% after the CPI data was released.

The inflation spike followed a 5.0% increase in the 12 months through May, while CPI rose 0.9% month over month after advancing 0.6% in May, gains that unnerved investors.

Stocks on Wall Street at first took the CPI data in stride, bidding up technology stocks that typically thrive with low interest rates.

The $24 billion of 30-year bonds were sold to yield 2.00%, or more than two basis points above where the debt had traded before the auction.