Inflation rises again due to oil prices; Fed likely holds rates, ECB and BOE may tighten.

Inflation is accelerating again, driven mainly by rising oil prices, with April CPI expected to increase 0.6% month-over-month and 3.7% year-over-year. Markets currently expect the Federal Reserve to maintain interest rates without cuts, while the European Central Bank and Bank of England may resume tightening policies as inflation expectations grow. Despite higher inflation, bond markets show a dovish stance from the Fed, with real yields falling and inflation swaps rising. The upcoming CPI report is a key event that could influence Treasury yields and the US dollar, potentially marking a significant market turning point.