Bond market focuses on inflation as yields overtake yesterday's highs

Market Focus & Fed Rate Meeting - The market's focus is shifting towards inflation numbers, evidenced by the reversal in two-year and ten-year Treasury yields, reaching higher highs than the previous day [2] - The Federal Reserve (Fed) is expected to announce a 25 basis point rate hike at the upcoming meeting [4] - The market may reprice the aggressiveness of the easing cycle if inflation stickiness persists [4] Economic Indicators & Sentiment - Initial jobless claims saw a significant jump, influencing yield movements [2] - University of Michigan sentiment preliminary numbers reflect a stagflation trade, with weakening sentiment and sticky inflation [3] - The speaker prioritizes hard data like PCE (Personal Consumption Expenditures Price Index), CPI (Consumer Price Index), and PPI (Producer Price Index) over inflation surveys [4] Treasury Yields & Investment Strategies - Ten-year Treasury yields have risen above 4% [1] - A potential double bottom pattern has formed, with a rejection of 4% as the low yield close of the year [4] - High yield junk bonds are attracting investors seeking juicy yields, with the high yield ETF closing at its highest level in approximately three and a half years [5]