Sticky Inflation Keeps Yields Near Peak Ahead of Fed Decision

U.S. Treasuries sit near multi-year highs as August CPI shows persistent inflation, boosting odds of a 25-basis-point Fed rate hike to about 90% ahead of next week’s meeting. The 2-year yield rose to roughly 4.57%, the 10-year to about 4.91%, and the 30-year around 5.32%. CPI rose 0.4% in August (3.4% year over year) with core CPI up 0.3% (2.4% y/y). The report is the Fed’s last major inflation read before the decision, as oil rebounds above $100 and a Treasury buyback adds market pressure.