"US Treasury Yields Hit One-Week Highs After February's Inflation Report"

U.S. Treasury yields rose to one-week highs after February's CPI inflation report showed a faster-than-expected increase in consumer prices, with the 2-year, 10-year, and 30-year rates reaching their highest levels since March 4. The annual headline inflation rate came in at 3.2%, slightly above economists' forecasts, while the core rate rose by 0.4% for the month and 3.8% year over year. Traders now anticipate a 62.2% chance of a 25-basis-point rate cut by June, and poor demand was seen at the Treasury's $39 billion auction of 10-year notes. Analysts suggest that the Treasury market is seeking a new range, and the recent decline in yields left rate markets vulnerable to the hotter inflation report and long-dated supply to clear.