US Treasury yields spike as inflation, Fed hawkishness trigger selloff

The signal here is less the inflation print than the reaction function: a Fed governor openly floating a 50bp move reframes the debate from 'how long to hold' to 'how fast to tighten,' and the front end is repricing accordingly. That matters most for rate-sensitive corners of crypto and tokenized RWAs, where duration and carry trades depend on the path of short rates rather than the level. The open question is whether Waller's framing gains traction among colleagues or remains an outlier — that, not the headline yield spike, is what determines if this is a one-day repricing or a regime shift.