Prices of shorter-term U.S. government bonds fell on Monday, the latest sign that investors expect the Federal Reserve to aggressively tighten monetary policy to curb inflation.

The two-year U.S. Treasury yield, which is inversely related to price, rose 0.11 percent to 2.4 percent in early European trade, having risen more than 1.6 percent since the end of last year.

Short-term bonds have sold more than longer-dated bonds this year as expectations for a series of Fed rate hikes in the coming months weighed on longer-term economic growth forecasts.

In one sign of those concerns, the yield on the five-year Treasury note rose above the yield on the 30-year note for the first time since 2006 on Monday. A so-called yield curve inversion of this nature reflects concerns that the Fed’s efforts to fight inflation may cause. Over time, it can suppress growth or even lead to recession.

U.S. consumer price inflation hits 40-year high 7.9% Analysts expect the surge to continue in February as commodity costs soared due to the war in Ukraine, exacerbating price disruptions caused by industries reopening from coronavirus lockdowns.

Anatole Kaletsky of Gavekal Research said: “The unique danger of this war is that its inflationary impact is already present at a moment when the world economy emerges from the Covid-19 pandemic, with inflationary pressures already at the highest level in a generation.”

“Inflation of 4% or 5% seems likely to be entrenched and pervasive in the U.S. economy.”

Citi analysts say last week The Fed is likely to raise borrowing costs by half a percentage point at each monetary policy meeting from May to September. Analysts at Goldman Sachs said on Friday they now expect the 10-year Treasury yield, which was just above 2.5% on Monday, to reach 2.7% by the end of 2022.

In stocks, the Stoxx Europe 600 opened 0.6% higher, while futures markets suggested Wall Street’s S&P 500 would drop 0.2% in early New York trade. Asian stocks were mixed, with Japan’s Nikkei 225 closing down 0.7% and Hong Kong’s Hang Seng up 1.1%.