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Business & Finance · November 10, 2026

Bonds reel as hot inflation fuels jumbo Fed hike fears

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Global financial markets reacted sharply to higher-than-expected U.S. inflation data and hawkish rhetoric from Federal Reserve officials. Bond yields experienced their most significant surge in 19 months, with the two-year U.S. Treasury yield rising 17 basis points on Tuesday. The shift in market sentiment follows comments from Fed Governor Chris Waller, who indicated he would consider supporting a 50-basis-point interest rate hike in December if core inflation remains high. While bond prices slumped and the dollar remained firm, some equity markets showed resilience despite the increased likelihood of more aggressive monetary tightening.

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Reported by multiple outlets

  • U.S. inflation data came in higher than expected last month.
  • Federal Reserve officials used hawkish rhetoric regarding future interest rate hikes.
  • Bond yields rose significantly as bond prices slumped.
  • Fed Governor Chris Waller suggested a 50-basis-point rate hike may be necessary in December.

Reported by only some outlets

  • The two-year Treasury yield surged by 17 basis points on Tuesday.
  • Governor Waller's comments were made during remarks in London.
  • Waller's threshold for a larger hike is core inflation remaining at or above 0.3%.
  • The 17-basis-point jump was the largest since April 2025.
  • U.S. stocks remained resilient despite the bond market turmoil.

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