May 2026 core CPI rose 0.2% monthly, below the expected 0.3%, lifting Treasury prices. But headline inflation hit 4.2% as rate-hike odds climb past 50%.

Bond traders price in Fed rate hikes as April CPI hits 3.8% and the 2-year Treasury yield reaches 4.18%, the highest since February 2025.

US CPI rose to 4.2% in May 2026, the highest since April 2023. Core CPI hit 2.9%. Bitcoin dropped to $62,747 as rate hike odds climb to 70%.