Treasury 2-year, 10-year yields hit highest since March after May’s CPI report

Two- and 10-year Treasury yields jumped to three-month highs on Tuesday, after the May consumer price report showed the annual core rate of inflation still running above 5%.

What happened

What drove markets

Data released on Tuesday showed consumer prices rose a scant 0.1% in May — held in check by cheaper gasoline — and that the yearly rate slowed to 4% from 4.9% previously, marking the lowest level since March 2021.However, the so-called core rate, which strips out food and energy to provide a purer read on…