According to CoinWires, the US 2-year Treasury yield touched 4.24% overnight, the highest level since February 2025. Despite the Federal Reserve cutting rates three times over the past year, the 2-year borrowing rate has not fallen accordingly. The market is taking a cautious stance ahead of the upcoming CPI report, expecting core CPI to rise 0.2% month-over-month and 2.8% year-over-year, while headline CPI is expected to drop to 3.8% due to lower fuel prices. In addition, Iran’s latest re-engagement could further dent hopes for easing oil prices; even though crude oil prices have fallen, a tight refining market is still keeping fuel prices elevated. Analyst Ian Lyngen believes the current market has priced in too much anticipation of further Federal Reserve rate hikes, and that the 2-year yield may face pressure over the next few weeks.