The yield on the US 10-year Treasury note was around 4.95% on Friday, slightly below Thursday’s levels but still close to 2023 highs. Traders assessed the latest CPI report, which showed the core CPI rose more than expected, increasing 0.3% month-on-month, up from 0.2% in July and above forecasts of 0.2%. The annual core inflation rate, however, slowed to a 2021 low of 2.4%, while headline CPI rose 0.4% as expected, leaving the annual rate at 3.4%. Following the release, the probability of a Fed rate hike next week jumped to around 90%, from roughly 70% beforehand, as the hotter-than-expected monthly core CPI reading bolstered the case for further monetary tightening. Meanwhile, the Treasury Department’s latest buyback operation resulted in weaker-than-expected purchases. The US government repurchased $5.2 billion worth of bonds, below the $6 billion cap and roughly half of the $10.5 billion offered in the operation.