bond yields rose early wednesday after data showing stubbornly high price pressures in the uk revived inflation concerns a reminder from the uk that high inflation can prove sticky has caused a broad selloff in government bonds forcing up yields the office for national statistics said consumer prices in britain rose 101 in the year to march down from 104 in february but higher than forecasts for a dip to 98 benchmark 10year gilt yields jumped 103 basis points to 3854 as traders increased bets that the bank of england will raise interest rates by another 25 basis points to 45 on may 11 us headline inflation has fallen from a fourdecade high of 91 in june 2022 but at the current 5 it too remains well above the federal reserve’s 2 target markets are pricing in an 88 probability that the fed will raise interest rates by another 25 basis points to a range of 50 to 525 after its meeting on may 3rd according to the cme fedwatch tool the central bank is expected to take its fed funds rate target back down to 47 by december according to 30day fed funds futures the federal reserve’s beige book of economic anecdote will be published at 2 pm and new york fed president williams is due to speak at 7 pm all times eastern what are analysts saying writing before the uk inflation data was released jim reid strategist at deutsche bank noted that easing stress in the financial system means the market has now “unwound around 90 of the tightening related to last month’s market turmoil so it’s increasingly feeling like a bad dream with little lasting impact on market based financial conditions” “the looser marketbased financial conditions have helped cement investors’ conviction that the fed are set to deliver another hike in just two weeks’ from now which was supported by the latest round of fomc speakers for instance st louis fed president bullard struck a bullish tone on the economy saying that ‘wall street’s very engaged in the idea there’s going to be a recession in six months or something but that isn’t really the way you would read an expansion like this’” reid said