Traders at work at the New York Stock Exchange on August 25, 2026.
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U.S. Treasury yields were little changed Wednesday as traders assessed the Federal Reserve’s preferred inflation measure, which was largely in line with expectations.
The yield on the 10-year Treasury note, a key measure of mortgage, auto loan and credit card debt, rose more than 1 basis point to 4.656%.
The 30-year Treasury yield rose less than 1 basis point to 5.183%. 2 years treasury Notes rose more than 1 basis point to 4.218%.
One basis point is equal to 0.01%, or one-hundredth of 1%, and yield and price are inversely proportional to each other.
July’s personal consumption spending measure, the Fed’s preferred indicator of inflation, came in slightly better than expected. Inflation rose a seasonally adjusted 0.2% for the month and 3.7% for the year, according to the Commerce Department. Both were 0.1 percentage points higher than the Dow Jones consensus estimate.
However, core PCE, which excludes volatile food and energy prices, rose 0.2% month-on-month and 3.3% annually, in line with expectations. Central bank policymakers typically view core inflation as a better measure of long-term trends.
The statistics were released ahead of the Jackson Hole Fed meeting, where Fed Chairman Kevin Warsh is expected to address persistently high inflation amid conflicts in the Middle East. The Jackson Hole Economic Policy Symposium begins Thursday. Warsh is scheduled to speak on Friday.
Oil prices received some respite on this front this week after the US imposed economic sanctions on Iran rather than a military strike.
However, oil prices fell off their lows on Wednesday after Iran’s Revolutionary Guards announced that the country had reached an agreement with Oman to share revenue from the Strait of Hormuz. Brent futures, the international benchmark, fell 1% to trade above $87 a barrel. US West Texas Intermediate crude oil fell 1% to more than $81 a barrel.
—CNBC’s Jeff Cox contributed to this report.
