"Bond Yields Surge, Erasing May Treasury Gains"

US Treasury yields have jumped, erasing the May rally driven by hopes of Fed rate cuts. The 10-year yield is back to 4.59%, with rate cut expectations diminishing. Minneapolis Fed President Neel Kashkari emphasized the need for sustained positive inflation data before considering rate cuts, and even hinted at potential rate hikes. Economic indicators show weakening trends, with significant revisions in new home sales, declining discretionary spending at Target, and challenges in the EV market. The housing market remains stagnant, and there are mixed views on whether the US is already in a recession.