2-Year Note futures trade lower for a fifth consecutive session, reaching new contract lows at 102'02. Selling pressure persists across the yield curve, particularly on the short end, following elevated PPI and CPI inflation data. The CME FedWatch Tool now signals an 85% probability of a rate hike at next week's Federal Reserve meeting. As a result, the 2-Year Treasury yield jumped 9 bps to 4.64%, hitting its highest level since July 2023 and driving a flatter yield curve. Dan Deming analyzes the dynamics behind the sell-off.