US Bond Yields Rebound as Investors Eye GDP and Inflation

Macro Impact 4
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Summary · why it matters

US Treasury yields moved higher amid the release of key economic data, with the 10-year yield at 4.663 percent and the 30-year yield at 5.211 percent. At its latest meeting, the Federal Reserve voted 6 to 3 to hold interest rates at 3.50 to 3.75 percent. Fed Chair Kevin Warsh gave no signal on the rate outlook but reiterated the 2 percent inflation target. The US Commerce Department reported its first estimate of second-quarter 2026 GDP growth at 1.5 percent, below the 1.8 percent analysts had expected and down from 2.1 percent in the first quarter, mainly due to lower government spending and inventories, even as consumer spending rose 2.1 percent from 0.4 percent in the prior quarter. The headline PCE index for June rose 3.7 percent year-on-year, in line with expectations, and fell 0.1 percent month-on-month. The core PCE index, which the Fed focuses on, rose 3.3 percent year-on-year and edged up just 0.1 percent month-on-month, below the 0.2 percent analysts had forecast.

Impact on stocks 0