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2026-07-30 23:18:53
[Long-Term Treasury Yields Hold onto Most Gains Following Fed Decision] Long-term U.S. Treasury yields held onto most of the gains made following this week's Federal Reserve decision, as a series of U.S. economic data showed inflation remaining high and the labor market resilient. The 30-year Treasury yield rose more than 10 basis points on Wednesday after the Fed kept interest rates unchanged, reaching its highest level since 2007, and remained around 5.20% on Thursday. The U.S. Treasury options market continued to see strong demand to hedge against the risk of further yield increases in the coming weeks. U.S. economic data released on Thursday included the Fed's preferred inflation gauge—the Personal Consumption Expenditures (PCE) price index, calculated based on June personal income and spending data. The index slowed to 3.7% from 4.1% in May, in line with economists' expectations. Since March 2021, the index has been above the Fed's 2% target every month. Meanwhile, oil prices, which had fallen in June, surged again after the U.S. resumed its strikes against Iran. "If inflation doesn't slow, there is a risk of further increases in long-term yields," said Jens Peter Sorensen, chief analyst at Danske Bank. "The market is still speculating on how many rate hikes are needed, and the timing of these hikes may be later than the market expects."
