Treasury Yields Spike as Hot Inflation Data Damps Hopes for Fed Rate Cuts

• Treasury yields soared to new highs as hotter inflation data reduced expectations for Fed rate cuts this year • March CPI reading was higher than expected, suggesting resilient economy and sticky inflation • Investors now expecting 1-2 Fed rate cuts at most this year rather than 3+ previously expected • Higher yields mean the government will raise less money from today's 10-year Treasury note auction • Traders have almost entirely abandoned bets on a June rate cut following the latest inflation data