Treasury yields have risen due to inflation data released for March, showing a 0.9% increase in consumer prices, the highest in nearly four years. This surge is attributed to the ongoing US-Iran conflict, which has disrupted oil supplies and driven prices up. The market's expectations for a Federal Reserve interest rate cut this year have diminished, now pricing in less than a 25% chance of a reduction. The consumer price index (CPI) rose 3.3% year-over-year, reflecting significant inflationary pressures, particularly in energy costs. Meanwhile, consumer sentiment has plummeted to a record low, highlighting concerns about the impact of rising prices on economic growth. The US two-year Treasury yield has fluctuated, recently reaching 3.80%, indicating increased volatility in the bond market as traders react to inflation expectations and potential Fed policy changes. Analysts suggest that the uncertainty surrounding the geopolitical situation warrants caution among investors, particularly in longer-term bonds.