Bond Market Sends a Shocker: Surging Yields Force Fed's Hand

The 10-year U.S. Treasury yield surged to 4.97% on Friday, up a full percentage point since late February and just a whisker below its high since 2007. This dramatic climb was triggered by a hotter-than-expected August inflation report, where consumer prices jumped, driven largely by gasoline, which now averages $4.29 a gallon nationwide.

Behind the Data

The core of the inflation spike isn't just energy. Food prices are also climbing, with beef up 9.4%...