FX.co ★ US 10-Year Yield Edges Higher

The yield on the 10-year US Treasury note rose to around 4.66% on Thursday, advancing for a second straight session as stronger-than-expected US economic data reinforced expectations of a Federal Reserve interest rate hike before year-end. The PCE price index increased 0.2% month-on-month in July, exceeding the 0.1% consensus forecast and reversing a 0.1% decline in June, while annual inflation edged up to 3.7%, slightly above expectations of 3.6%.

Investors are now looking ahead to Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday for additional policy signals, though he is not expected to provide a definitive indication of the central bank’s September decision. At the same time, markets continued to evaluate the Treasury’s plan to at least double its buyback operations. Billionaire investor Stanley Druckenmiller has criticized the initiative, arguing that it undermines the credibility of the Treasury market and squanders a chance to pursue meaningful debt reform.