"Rising Yields: Bond Market Reacts to Strong Jobs Data and Inflation Concerns"

The 10-year Treasury yield rose to 4.40%, the highest since November 27, signaling a recognition in the bond market that inflation rates will be higher than pre-pandemic levels. The Fed is expected to keep policy rates high to prevent inflation from spiraling out of control, leading to higher yields. Despite previous expectations of rate cuts, recent economic growth and inflation trends have led to a shift in market sentiment, with uncertainty surrounding the path of inflation and the potential need for higher policy rates to be restrictive.