10-Year Treasury Note yields rallied to 4.5%, climbing 4.5 basis points as they tracked rising WTI Crude Oil futures moving north of $90 dollars a barrel. The spike in energy costs has driven up inflation expectations, prompting the market to price in an 80% probability of a rate hike by the end of the year, with a full hike expected by the first quarter of next year. Volatility followed suit, with the CVOL Index reflecting the elevated yield environment. Ahead this week, market participants are watching for Challenger job cuts, jobless claims, Fed speakers, and Middle East developments, all leading up to Friday's non-farm payrolls report.
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