Bond traders are wagering that inflation figures this week will show the biggest surge in consumer prices in several years, adding to pressure on the Federal Reserve to raise interest rates.
Unexpectedly robust US jobs data jolted yields higher on Friday and bolstered bets that the Fed’s next move will be a hike by December. Ten-year yields surged to 4.55%, a two-week high. The rate on the two-year, which is especially sensitive to Fed expectations, touched 4.18%, the highest since February 2025.
