[US Treasuries Experience Sharp Sell-Off as Inflation Data and Hawkish Fed Comments Shake Interest Rate Bets] The US bond market experienced one of its worst sell-offs since April 2025 due to higher-than-expected inflation and warnings from Federal Reserve officials about potential further rate hikes. On Tuesday, the yield on the 2-year US Treasury note, which is more sensitive to changes in Fed policy than longer-term bonds, surged as much as 21 basis points to 4.77%, poised for its biggest single-day gain since the global market turmoil triggered by Trump's retaliatory tariffs. This volatility marks another sharp reversal in the bond market. Since the beginning of last month, US Treasuries had risen sharply as tech stocks fell and oil prices retreated. However, on Tuesday, both of these driving factors were sidelined, and market focus shifted back to the inflationary pressures that the Fed has struggled to contain since the pandemic. The selling pressure began with comments from Fed Governor Waller, who stated that he would support a one-off 50-basis-point rate hike if inflation continues to accelerate. Traders began pricing in the possibility of a significant Fed rate hike in December after the US released its October Consumer Price Index (CPI) data, which came in higher than economists' expectations. Dallas Fed President Logan's remarks further reinforced this expectation. She stated that at least two more 25-basis-point rate hikes are needed, and the Fed may need to begin accelerating its pace of action. (Cailian Press)