Treasury Yield Edges Up as Markets Weigh Inflation and Fed Outlook

2026-08-26 13:03 By Joana Ferreira 1 min. read

The yield on the 10-year US Treasury note edged up to 4.65% on Wednesday as investors assessed fresh economic data for clues on the Federal Reserve’s interest-rate path.

The PCE price index rose 0.2% in July, above expectations for a 0.1% increase, while annual inflation reached 3.7% versus forecasts of 3.6%.

Core PCE rose 0.2% month-over-month and 3.3% year-over-year, both in line with expectations.

Consumer spending and income also came in slightly above forecasts.

Separate data showed US GDP grew 1.5% in Q2 as initially estimated, while durable goods orders rose 1.1% in July, beating expectations of 0.5%.

Gains in Treasury yields were capped by a third consecutive decline in oil prices, easing concerns over near-term inflation.

Meanwhile, investors continued to debate the Treasury’s plan to at least double its buybacks, with billionaire investor Stanley Druckenmiller arguing the move undermines the Treasury market’s credibility and misses an opportunity for meaningful debt reform.



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