Recent inflation readings, including September CPI at 3.7% year-over-year and core PCE at 3.1%, combined with 3.4% third-quarter GDP growth, have kept the Federal Reserve on hold at the 3.75-4.00% federal funds target range following the October 28 FOMC decision. The 2-year Treasury yield, currently near 4.61% after trading between roughly 4.3% and 4.9% in recent weeks, reflects trader positioning for a potential December rate hike amid sticky price pressures and resilient labor market data showing unemployment near 4.2%. Stronger-than-expected growth and limited progress toward the 2% inflation goal have lifted market-implied rate expectations, with upcoming November employment and inflation releases serving as key near-term catalysts that could influence the peak level reached before 2027.