Treasury Yields Rise as May Inflation Exceeds Expectations at 2.7%

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U.S. Treasury yields edged higher following stronger-than-expected inflation data. The 10-year yield held steady at 4.253%, while the 2-year yield rose 2 basis points to 3.732%.

Core inflation, which excludes food and energy, climbed to 2.7% in May—higher than the 2.6% economists predicted and up from April’s 2.5%.

The inflation surprise comes as President Trump escalates tensions with Fed Chairman Jerome Powell, criticizing the Fed’s cautious stance on interest rates amid tariff uncertainty.

Trump claims to have a shortlist of replacements and may announce Powell’s successor as early as September, well before Powell’s term expires in 2026.



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