Treasury yields recover some of last week’s steep losses triggered by lower-than-expected inflation. The two-year is at 4.399% and the 10-year at 3.860%, both off recent highs. Fed Governor Christopher Waller warned Sunday that the battle against inflation will require higher interest rates. “The Fed is going to slow, not stop,” AmeriVet’s Gregory Faranello says in an analysis report. “But market moves following the CPI report [highlight] the sensitivity to inflation and the desire for reprieve from 2022.” Economists surveyed by WSJ expect tomorrow’s October PPI to have increased 0.4% on a monthly basis, the same as in September.

By: Paulo Trevisani (paulo.trevisani@wsj.com; @ptrevisani)