The bond market is bracing for the release of key inflation data, which is widely expected to dictate market sentiment in the coming days. Investors are keenly focused on the upcoming reports, as they will provide crucial clues about the trajectory of interest rates and the Federal Reserve’s monetary policy decisions.

Analysts believe that a higher-than-expected inflation reading could trigger a sell-off in bonds, pushing yields higher. Conversely, weaker inflation data might lead to a rally in the bond market, as it would suggest that the Federal Reserve may be less aggressive in raising interest rates. Market participants will be scrutinizing the data for any signs of inflationary pressures, as well as underlying trends that could influence the central bank’s outlook.