Finance

The latest Consumer Price Index report from the Labor Department showed headline inflation holding steady at an annual rate of 3.4%, matching expectations. However, the core CPI, which strips out volatile food and energy costs, ticked up slightly higher than forecasted at 0.3% for the month. Following the data release, market indicators showed a sharp rise in the implied odds of a Federal Reserve interest rate hike at the upcoming policy meeting.

Brent crude futures experienced a volatile session, touching a four-month high near $110 per barrel before cooling down to settle around $104.61. The energy sector remains highly pressured due to ongoing geopolitical tensions, including restricted flows through major conduits following regional conflicts and pipeline disruptions in Saudi Arabia. Despite the daily pullback, oil prices finished with a notable gain for the week, keeping diesel costs at historic highs.

U.S. government bonds faced selling pressure as fixed-income investors grappled with persistent core inflation and macroeconomic headwinds. The benchmark 10-year Treasury yield hovered just below the 5% threshold, reaching intraday levels not seen in roughly three years. Simultaneously, long-dated debt yields escalated further, with the 30-year yield hitting its highest point since 2004 despite recent government buyback efforts.