CPI inflation report was released on Wednesday and U.S. bonds have reacted to the latest inflation data. Two-year U. S treasury yield was last up 0.9 basis points at 4.133 per cent. Yield on 10-year U. S treasury notes edges up after CPI inflation data, last up 0.8 basis points at 4.536 per cent. Yield curve between two and 10-year treasury notes last at a positive 39.9 basis points.U.S. consumer inflation increased at its fastest pace in three years in May as the Middle East conflict raised the price of gasoline and other energy products, giving more ammunition for the Federal Reserve to keep interest rates unchanged into 2027.The Consumer Price Index increased 4.2 per cent in the 12 months through May, the largest gain since April 2023, the Labor Department's Bureau of Labor Statistics said on Wednesday. The CPI advanced 3.8 per cent year-on-year in April. Prices increased 0.5 per cent on a monthly basis after climbing 0.6 per cent in April.Economists polled by Reuters had forecast the CPI increasing 4.2 per cent year-on-year and gaining 0.5 per cent on a monthly basis.The third straight month of strong increases in the CPI highlighted mounting pressure on households as evidence suggests more ‌consumers are dipping into ⁠savings to ⁠finance their spending. Inflation outpaced wage growth for a second consecutive month, which could weigh on overall economic growth.U.S. stock indexes slipped, with futures tracking the Nasdaq composite declining 0.9 per cent and those on ​the S&P 500 down 0.6 per cent.