Bond yields edged lower on Wednesday as investors digested mixed economic signals and positioned themselves ahead of the eagerly anticipated CPI report. The 10-year Treasury yield retreated from the 5% threshold, settling around 4.94%, while the 2-year note also saw a modest decline. Stock futures in the S&P 500 and Nasdaq showed slight gains, suggesting cautious optimism in equity markets.

Traders are now focused on upcoming inflation data, with the Consumer Price Index (CPI) report due Thursday, which could significantly influence monetary policy expectations. The Federal Reserve's stance remains a central concern as inflationary pressures continue to shape market dynamics across fixed income and equity sectors. Risk assets may react sharply depending on the CPI's outcome, with key levels in both bonds and stocks drawing close attention from portfolio managers and institutional investors.