The yield on the US 10-year Treasury note rose to 4.44% on Monday, its highest level in nearly a month, as bond markets came under pressure from escalating trade tensions and anticipation of key inflation data. President Trump announced a 30% tariff on imports from the European Union and Mexico, set to take effect on August 1. While leaders from both trading partners have pledged to continue negotiations in hopes of securing a deal to ease the tariff burden, markets remain cautious. Still, investors are betting the final tariff rate could be reduced. Attention now turns to Tuesday’s CPI release, which is expected to show a rise in inflation as businesses begin passing on higher import costs. PPI data is also scheduled for later in the week. Meanwhile, markets continue to price in two quarter-point cuts to the federal funds rate this year, with the first expected in September.