Market Reacts to Surprising Inflation Data

Following the release of the January inflation report, which indicated an unexpected rise in the inflation rate to 3%, the yields on United States Treasuries across various maturities experienced significant increases. This development occurred amidst Federal Reserve Chair Jerome Powell's testimony before Congress, where he indicated no immediate plans to alter the current monetary policy stance.

Yields on the Rise

The 10-year Treasury note saw its yield jump by 10.6 basis points to 4.643%, while the 30-year bond's yield increased by 9.4 basis points to 4.841%. Similarly, the two-year bond's yield rose by 7.3 basis points to 4.363%. These movements reflect the market's reaction to the hotter-than-expected inflation figures, suggesting that rate cuts might not be on the horizon in the near future.