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Treasury yields rise ahead of June US CPI amid renewed inflation fears

10-year yields hit 4.63%, while 2-year yields rose to 4.29%, and markets are pricing a 25 bps Fed hike by September.

Reported · Written up by our desk · Government Bonds

Ahead of the release of June US CPI later in the day, Forexlive said bond markets are moving higher even as broader markets take a breather after the previous session’s risk selloff tied to renewed US-Iran tensions.

Forexlive reported that 10-year Treasury yields have climbed to 4.63%, the highest since the end of May, with the long end also firming as 30-year yields touched 5.11%. It also noted sharper gains at the short end, with 2-year yields rising to 4.29%, the highest since February 2025.

The move, according to Forexlive, reflects renewed inflation fears and a further shift in the Fed outlook ahead of the CPI print. Traders are now fully pricing in a 25 bps rate hike by September.

Forexlive added that CPI figures will cover June, when energy prices were expected to be softer after a US-Iran ceasefire but that inflation pressures may reemerge in July, including as energy prices have rebounded in recent days and the Strait of Hormuz is closed again. The outlet said the resulting inflation anxiety is already showing up in bond yields and could spill into wider market pricing.

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