Treasury Yields Retreat After CPI-Driven Spike, Dollar Slips From 18-Month High

U.S. Treasury yields slid after an earlier spike tied to the consumer price index (CPI) report, giving back some of the move that had pushed the dollar to an 18-month high. The retreat came as traders pared expectations for a near-term interest rate increase from the Federal Reserve. The swing matters because it shows markets are still working out how much the latest inflation data should move rate expectations, after an initial reaction that proved short-lived. Bank of England official Huw Pill added a separate data point for global rate-watchers, saying a UK rate hike need not mark the start of a long series of increases. What is unresolved is whether yields keep drifting lower or whether upcoming Fed commentary reasserts the hawkish reaction markets saw right after the CPI print.