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Treasury Yields Staring Down 3% Threshold Await CPI for Next Cue

  • Swaps traders see half-point Fed hikes in June and July a lock
  • Consumer prices may clarify size of further rate boosts

The fate of the world’s biggest bond market is hanging largely on a single question: Has inflation in the US already peaked? 

Treasury yields have swung back at forth since last month as traders try to game out whether the Federal Reserve will need to stick with an aggressive series of interest-rate hikes or have room to ease up if the economy slows enough to snap the steepest inflation in four decades.