10-year Treasury yield retreats from 2007 high after PCE data shows inflation slowed in August

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 15, 2026. Jeenah Moon | ReutersTreasury yields were lower on Wednesday following the release of lighter-than-expected U.S. inflation data for August.The 2-year Treasury note yield slid more than 6 basis points, to 4.827%, while the 10-year Treasury was nearly 4 basis points lower, at 5.217%, pulling back from its highest level since 2007. The 30-year Treasury bond was down almost 2 basis points at 5.578%, after rising to its highest level since 2002 on Tuesday. One basis point equals 0.01%, and yields and prices move in opposite directions. Consumer prices posted a smaller than expected increase in August from a year ago, according to the Federal Reserve's primary measure of inflation. The personal consumption expenditures price index increased a seasonally adjusted 0.3% for the month, putting the 12-month gain at 3.4%, the Commerce Department reported Wednesday. Economists surveyed by Dow Jones had been looking for increases of 0.3% and 3.7% respectively.Excluding food and energy, PCE posted a 0.2% increase in August that put the annual core level at 3%. The respective forecasts were for ...