Treasury yields traded little changed Wednesday as investors digested a fresh reading of the Federal Reserve’s preferred inflation gauge, which came in broadly in line with expectations.
The yield on the 10-year Treasury note — the benchmark for mortgages, auto loans, and credit card debt — rose more than 2 basis points to 4.66%. The 30-year Treasury bond yield climbed more than 1 basis point to 5.187%, while the 2-year Treasury note yield added 2 basis points to 4.224%. One basis point equals 0.01%, and yields move inversely to prices.
PCE inflation: headline ticks up, core matches forecasts
The Commerce Department’s July personal consumption expenditures report, the Fed’s preferred measure of inflation, showed headline prices rose 0.2% on a seasonally adjusted basis for the month and 3.7% from a year earlier. Both figures came in 0.1 percentage point above the Dow Jones consensus estimate.
Core PCE, which strips out volatile food and energy prices, rose 0.2% for the month and 3.3% year over year — matching analyst forecasts. Policymakers tend to view the core reading as a more reliable gauge of longer-term inflation trends.
Jackson Hole in focus
The data lands just ahead of the Fed’s Jackson Hole symposium, which kicks off Thursday. Fed Chairman Kevin Warsh is scheduled to speak Friday, with investors expecting him to address persistently high inflation against a backdrop of conflict in the Middle East.
Oil prices offered some relief on that front this week, extending Tuesday’s declines amid reports that Iran and Oman are nearing a deal to secure safe transit through the Strait of Hormuz. Brent crude, the international benchmark, fell 1% and traded above $87 per barrel, while U.S. West Texas Intermediate was down 1% at above $81 a barrel.
— CNBC’s Jeff Cox contributed to this report.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/26/treasury-yields-inflation-fed.html
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