Recent hotter-than-expected October CPI data, showing core inflation rising 0.3% month-over-month, combined with a stronger-than-forecast October jobs report adding 165,000 positions and unemployment falling to 4.1%, have driven the 2-year Treasury yield sharply higher to approximately 4.8% as of November 12. Markets now price greater odds of additional Federal Reserve rate hikes, including potential 25- or even 50-basis-point moves at the December FOMC meeting, amid persistent inflation pressures from energy costs and AI-driven demand. With the Fed funds target range at 3.75-4.00%, upcoming November employment and inflation releases plus the policy decision will shape near-term expectations, while fiscal deficits and resilient growth support elevated term premiums that could constrain how far short-term yields decline before year-end.