[U.S. Treasuries encountered a violent sell-off, with inflation data and hawkish comments from the Federal Reserve shaking interest rate bets] On November 11, due to higher-than-expected inflation and warnings from Federal Reserve officials that they may increase interest rate hikes, the U.S. bond market suffered one of the most severe sell-offs since April 2025. On Tuesday, the yield on the 2-year U.S. Treasury note, which is more sensitive to changes in Federal Reserve policy than long-term bonds, surged 21 basis points to 4.77%. It is set to record the largest one-day rise since Trump's reciprocal tariff measures triggered a tremor in global markets. The move marked another dramatic reversal in the bond market. U.S. Treasuries have risen sharply since early last month as technology stocks fell and oil prices retreated. But both drivers were pushed aside on Tuesday, with market focus turning back to inflationary pressures that the Fed has struggled to contain since the start of the pandemic. The selling pressure began with comments from Fed Governor John Waller. He said that if inflation continues to accelerate, he will support a one-time interest rate hike of 50 basis points. When the U.S. consumer price index (CPI) data for October was higher than economists expected, traders began to factor in the possibility of a sharp interest rate hike by the Federal Reserve in December. Dallas Fed President Logan's speech further strengthened this expectation. She said at least two more quarter-point rate hikes are needed, and the Fed may need to start moving faster.