United States Treasury yields rose on Thursday after the latest GDP report showed that the personal consumption expenditures (PCE) price index rose by 4.2% in the first quarter of 2023 compared to a 3.7% increase documented in the fourth quarter of 2022.
The core PCE inflation, which the Federal Reserve uses as its main indicator of price growth, stood at 4.9% in the first trimester, up 0.5 percentage points from the final three months of 2022, further pointing to the possibility of another interest rate hike next week.
The return on the 10-year Treasury note was up 8.5 basis points to 3.515% at 12:44 pm ET. The yield on the two-year note soared 14.2 basis points to 4.066% at the same time. The return on the 30-year bond rose by 6.7 basis points to 3.756% at 12:45 pm ET.