Recent hotter-than-expected October CPI data, showing a 0.4% monthly headline rise and 0.3% core increase, triggered a sharp repricing of Federal Reserve policy expectations and drove the 2-year Treasury yield from around 4.56% early in the month to 4.86% by November 12. Persistent inflation pressures, reinforced by hawkish comments from New York Fed President John Williams and San Francisco Fed President Mary Daly signaling further tightening needs, have elevated market-implied odds of a December rate hike—potentially 50 basis points—and pushed the policy-sensitive 2-year yield higher amid a stronger dollar and firmer labor market. The effective federal funds rate remains in the 3.75%-4.00% range following the September increase. Key near-term catalysts include the December 4 employment report and the December 9 FOMC meeting with updated projections, which could further influence short-term yield levels before month-end.