US Inflation Data Surprises to Upside: CPI Hot, 10-Year Yield at 5%, Fed Rate-Hold Bets Shift

US wholesale inflation surged in April to its fastest pace since 2022 with PPI up 6% year-over-year, driven by energy shocks. The 10-year Treasury yield hit its highest since July, reaching 5%, as markets reprice expectations for Fed rate cuts and hold duration longer. Energy-driven inflation is pressuring USD and equity valuations.