Core CPI (Excluding Food & Energy) vs 2-Year Treasury Yield
Core CPI (Excluding Food & Energy) is currently 3.1% (down -0.1%). 2-Year Treasury Yield is currently 3.7% (down -0.3%).
| Metric | Core CPI (Excluding Food & Energy) | 2-Year Treasury Yield |
|---|---|---|
| Current value | 3.1% | 3.7% |
| Previous reading | 3.2% | 3.99% |
| Change | -0.1% | -0.3% |
| Trend | down | down |
| Frequency | Monthly | Daily |
| Source | Bureau of Labor Statistics | U.S. Treasury |
| Last updated | 2026-03-12 | 2026-04-04 |
| Category | inflation | rates |
What Core CPI (Excluding Food & Energy) measures
Core CPI measures consumer price changes excluding food and energy, which are volatile and often driven by supply factors rather than monetary policy. It is the Fed's preferred gauge of underlying inflation trends.
Core CPI at 3.1% shows that underlying inflation remains sticky above the Fed's 2% target. Housing costs and services inflation are the primary culprits. For executives, sticky core inflation means the Fed is unlikely to cut interest rates soon, keeping borrowing costs elevated. Budget planners should assume inflation-adjusted cost increases of 3%+ for services, labor, and real estate.
What 2-Year Treasury Yield measures
The 2-year Treasury yield reflects market expectations for short-term interest rates over the next two years. It is the most sensitive government bond to Federal Reserve policy changes.
The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs, short-term borrowing costs may decline sooner than long-term rates, favoring shorter-duration financing strategies.
Frequently asked
Core CPI (Excluding Food & Energy) is currently 3.1%, down -0.1% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
2-Year Treasury Yield is currently 3.7%, down -0.3% from the previous reading. Source: U.S. Treasury, updated daily.
Core CPI at 3.1% shows that underlying inflation remains sticky above the Fed's 2% target. Housing costs and services inflation are the primary culprits. For executives, sticky core inflation means th The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs