Treasury Yields Hit 2026 Highs as Inflation Data Revives Fed Rate-Hike Bets

U.S. government bond yields rose May 13, 2026, after April producer price data showed inflation accelerating faster than expected, pushing traders to nearly price in a Federal Reserve rate increase by June 2027. The 10-year Treasury yield climbed nearly 2 basis points to 4.49%, its highest level since July 2025, while the 30-year yield topped 5.04% for the first time since July. Five-year and 30-year yields also reached 2026 highs. The dollar strengthened, and yields across maturities rose 1 to 3 basis points. April PPI rose 6% from a year earlier, up from a revised 4.3% in March, while core PPI increased 5.2%, above estimates. April CPI rose 3.8%, with core CPI up 2.8%. Short-term rate futures briefly priced in 24 basis points of tightening by the June 2027 Fed meeting, versus 21 basis points on May 12. The 10-year breakeven inflation rate rose to 2.51%, near its 2026 highs.