Updated
Updated · CNBC · Jun 22
U.S. 10-Year Treasury Yield Rises to 4.483% as Markets Brace for Thursday PCE
Updated
Updated · CNBC · Jun 22

U.S. 10-Year Treasury Yield Rises to 4.483% as Markets Brace for Thursday PCE

3 articles · Updated · CNBC · Jun 22

Summary

  • 4.483% marked the 10-year Treasury yield after it climbed more than 3 basis points Tuesday, while the 2-year rose above 4.213% and the 30-year reached 4.919%.
  • Thursday's May PCE report is the week's key test, with economists expecting core inflation to accelerate from April even after stripping out food and energy.
  • That inflation focus has intensified since last week's Fed meeting kept rates at 3.5%-3.75% but struck a more hawkish tone, pulling market expectations for a hike forward to as soon as October.
  • The move in yields came despite falling oil prices, underscoring that investors are prioritizing any data that could confirm the Fed is nearing renewed rate increases.

Insights

The Fed now favors a new inflation metric. Could this shift lead to surprise interest rate hikes the market isn't expecting?
A Middle East war is fueling global inflation. Can the Fed's rate hikes cool prices without triggering a major economic downturn?
With the Fed ditching its 'dot plot,' how will investors predict interest rate moves in this new era of intentional uncertainty?