Treasury yields moved higher on Monday after the release of inflation data, with the 10-year note reaching 2.88%. The yield on the 30-year bond also increased, hitting 3.87%.

The rise in yields reflects investor sensitivity to inflation indicators. Market participants are interpreting the data as a sign that inflationary pressures may be building in the economy.

The data comes amid ongoing debate about the Federal Reserve’s monetary policy. Investors are closely monitoring economic releases for clues about the timing and pace of future policy adjustments.

Higher inflation could prompt the Federal Reserve to consider tapering its asset purchase program or raising interest rates sooner than previously anticipated. This expectation is contributing to the upward pressure on Treasury yields.

The market’s reaction highlights the interconnectedness of inflation data, monetary policy, and Treasury yields. Investors will likely remain focused on economic indicators as they assess the outlook for interest rates and the broader economy.