Signs of persistent U.S. inflation pushed Treasury prices down and yields up; 2-
to 5-year yields rose more than 10 bps after Tuesday's inflation release.
Traders stepped up bets on further Fed tightening, pricing at least two rate
hikes by mid-2027 and a small probability of a 50-bp move in December. Fed
governor Waller, speaking in London, said he would lean toward a 50-bp hike if
inflation accelerates. Markets have fully priced a 25-bp Fed hike for December.
