The 10-year Treasury yield rose on Friday, following a surprise increase in the Federal Reserve’s preferred inflation gauge. The benchmark yield increased by 2.2 basis points to 4.275%, while the 30-year yield climbed 2 basis points higher to 4.836%. One basis point is equivalent to 0.01%.
Treasury yields and prices move inversely, so an increase in the short-term yield may signal a potential rise in long-term interest rates.
The Personal Consumption Expenditures (PCE) price index for May showed a 0.1% increase, putting the annual inflation rate at 2.3%. Core PCE, which excludes food and energy prices, rose by 0.2% on the month and 2.7% over the past year.
Investors are closely monitoring President Donald Trump’s renewed threats against Federal Reserve Chairman Jerome Powell. Following a Congressional hearing where Powell reiterated the Fed’s wait-and-see approach to hold interest rates, Trump has vowed to appoint a new chairman before the end of his term in 2026. Reports suggest that Trump will announce his chosen successor as early as September or October.
Source: https://www.cnbc.com/2025/06/27