The release of more than expected inflation data raised fears about possible recession. Short-term Treasury yields shot up Friday.

To trade at 2.9%, the 2-year yield jumped by more than 8 basis points. After briefly rising, the benchmark 10-year Treasury yield fell before reversing its gains. It was last traded at 3.03%. Because of their greater sensitivity to Federal Reserve rate increases, short-term rates were more volatile.

The U.S. Consumer Price Index, an inflation indicator closely monitored, is a highly watched index. rose by 8.6% in May on a year-over-year basisThe Bureau of Labor Statistics announced Friday that it was the fastest growth since 1981. Dow Jones polled economists and expected an 8.3% increase.

So-called core CPI was a measure that excludes volatile energy and food prices. It rose by 6%. It’s still higher than an estimated 5.9%.

Greg McBride, chief bankrate financial analyst, said that “so much for the notion that inflation has peaked.” The Fed’s ability to slow down the rate of hikes following the June and Jul meetings seems distant now. “Hopes for better have failed again as inflation continues to rear its ugly head.”

Since inflation has been on the rise all year, Fed officials have raised rates in an effort to reduce those price pressures.

With the Federal Open Market Committee meeting minutes, in March, The Fed raised rates. In May, it implemented a massive 50-basis point hike. pointing to further aggressive increases ahead.