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CPI data for August slightly missed expectations, headline +0.4%m/m and +2.9%y/y but core components showed signs of stickiness, resetting some dovish hopes; UST10Y yield, which briefly traded below 4.00% in anticipation of softer inflation, edged up to ~4.06% as markets absorbed the hotter than forecast services inflation, while UST2Y held around ~3.56%, pushing the curve steeper. Long-dated yields showed less sensitivity to Fed rate cuts than expected, reflecting concern that inflation remains elevated. Safe havens saw mixed demand, and bond market volatility increased. Investors now await upcoming PPI, retail sales, and Fed commentary for clues whether inflation is firmly moderating or still subject to upside risk.