Unexpected inflation surge in Canada propels 10-year treasury yield to new highs

• The 10-year treasury yield reached a new cycle high at 4.3% due to an unexpectedly high Consumer Price Index (CPI) print for Canada.
• Inflation rose beyond the anticipated 3.8% to reach 4%, indicating a strong inflationary environment and contributing to the upward trend in treasury yields.
• The upcoming U.S. Federal Open Market Committee (FOMC) decision is anticipated, with speculation that the committee will maintain the fed funds rate between 5.25% and 5.50%.
• This decision could potentially bring stability amidst inflation-induced volatility and may influence the future direction of treasury yields.

The article discusses a surprising turn in the trajectory of the 10-year treasury yield, driven by unexpected inflation and the upcoming FOMC decision. The sentiment is neutral, providing information without expressing a positive or negative opinion.