US Treasuries Sell Off as Inflation, Fed Hawkishness Lift Rate Bets

The front-end-led selloff signals that markets are repricing the Fed's reaction function rather than just the inflation print, with the two-year yield's move rivaling the tariff-shock episode in magnitude. This matters most for rate-sensitive corners of crypto and RWA markets, where tokenized Treasury products and yield-bearing stablecoin structures transmit short-rate volatility directly to on-chain holders. The open question is whether Fed officials follow hawkish rhetoric with action, or whether the inflation surprise proves transient — the two-year's next move will be the tell.