According to CNBC, Warren Pies, co-founder and strategist at 3Fourteen Research, said investors may be underestimating the risk of a more aggressive Federal Reserve, with markets not pricing in another two or more rate hikes. On Tuesday, the two-year Treasury yield rose 18 basis points to above 4.73%; after bond markets reopened Thursday, it reached 4.87%, while the 10-year yield climbed above 5.11%. A hotter-than-expected October inflation report strengthened expectations for a quarter-point rate increase at the Fed’s December meeting and raised concerns about further hikes in 2027. Fed funds futures were last pricing in three quarter-point increases by March, which would put the target rate at 4.50% to 4.75%, compared with 3.75% to 4.00% currently. Goldman Sachs chief U.S. economist David Mericle expects another quarter-point increase in March, following the one he anticipates in December.