Treasury Yields Dip After May CPI Misses; Bond Traders Still Betting on Fed Rate Hike by Year-End

Following lower-than-expected May core inflation data, U.S. Treasury yields declined modestly on Wednesday. The two-year Treasury yield, most sensitive to monetary policy shifts, fell to 4.11% from 4.13% earlier in the day, with broader yields dropping less than 1 basis point. Despite the decline, bond traders remain positioned for a Federal Reserve rate increase before year-end.
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