The yield on the 10-year Treasury note is holding below 5% after new data showed core consumer prices rising more than expected last month.

The report reinforced bets that the Federal Reserve could raise interest rates next week, leading to an uptick in short-term Treasury yields, which are especially sensitive to the rate outlook. The 10-year yield, an important borrowing benchmark, climbed right after the report but quickly retraced gains and was hovering around 4.95% in recent trading.

Closely watched core prices rose 0.3% in August from the previous month-a bigger increase than the 0.2% gain that economists had anticipated. The year-over-year increase, however, matched expectations at 2.4%.