U.S. Treasury yields dipped after the core PCE price index climbed 0.3% month-over-month, signaling persistent inflation pressures.
U.S. Treasury yields retreated on Thursday after the core PCE price index, the Federal Reserve’s preferred inflation measure, rose 0.3% month-over-month. The print reinforced concerns about sticky inflation, prompting a pullback in yields from earlier gains.
The increase matched expectations but followed a series of higher-than-anticipated inflation reports in recent weeks. Markets had priced in a potential easing of price pressures, but the latest data suggested inflation remains a challenge for policymakers.
Yields had climbed earlier in the session before reversing course post-release, reflecting investor caution ahead of future Fed policy decisions.