Source: US Dept. of Treasury End of Day
• Yields surged late in the week with the two-year Treasury note rising by 39 basis points to 3.07% while the five-year note increased by 34 basis to 3.27%
• Consumer prices in May exceeded expectations advancing 1.0% over the month and 8.6% over the trailing year and largely caught markets off guard as equities plunged nearly 3% while yields across the curve shifted up significantly
• Core CPI advanced 0.6% in May as shelter prices, which account for more than 40% of the index, increased by 5.5% over the past year marking the quickest yearly increase in 30 years
• The Fed meets Tuesday and Wednesday this week where it is widely expected that the committee will raise the benchmark interest rate by another 50 basis points as markets now price in three consecutive 50 basis point hikes to take place through September
