29.08.202502:27:51UTC+00US 10-Year Yield Pressured Ahead of PCE Inflation Data

The yield on the 10-year US Treasury note remained near 4.21% on Friday, remaining close to its four-month lows. This stability came as investors anticipated the PCE price index, which is the Federal Reserve’s favored measure for inflation, to gain new insights into policy direction. Projections for the Core PCE indicate an annual rise of 2.9% in July, marking the quickest rate in five months. Revised data released on Thursday also showed that the US economy experienced slightly faster growth in the second quarter, bolstered by increased business investment and trade. Additionally, Fed Governor Christopher Waller expressed his support for initiating rate cuts next month and has a clear expectation for further reductions thereafter to steer policy toward a neutral position. During August, the benchmark yield has seen a decline of nearly 20 basis points as traders have increased their expectations of Fed easing. The current market sentiment suggests an 86% likelihood of a 25 basis-point rate reduction in September.