U.S. Treasury Yields Rise Across Maturities Amid Strong August Consumer Spending Data

U.S. Treasury yields have generally risen across various maturities this week, reflecting stronger economic data. The 10-year yield increased to 4.185%, the 30-year yield rose to 4.765%, and the 2-year yield climbed to 3.646%, with most showing gains over recent weeks despite some daily fluctuations. Strong consumer spending and an upward revision of second-quarter GDP growth to 3.8% have contributed to these yield increases, signaling a resilient economy. Inflation measures, such as the Personal Consumption Expenditures (PCE) Price Index, rose modestly, aligning with expectations and influencing Federal Reserve rate cut forecasts downward. While the Fed cut rates recently due to labor market concerns, traders now anticipate fewer cuts this year, reflecting the balance between inflation risks and economic strength. The yield curve steepened slightly as longer-term yields rose more than short-term ones amid this economic backdrop.