Treasury Yields Fall as Investors Await Crucial PCE Inflation Data

Treasury yields fell on Wednesday after a heavy selloff in the previous session. The US Treasury yield moved lower, recovering some ground as investors awaited the key PCE inflation reading.

The benchmark 10-year yield declined to 5.216%, while the two-year yield remained flat at 4.88%. However, the pullback was not enough to ease concerns about inflation and future Fed policy.

Investors turned their attention to the Federal Reserve's preferred inflation gauge for fresh clues about the path of interest rates. The Personal Consumption Expenditures price index is due on Wednesday, with economists surveyed by Dow Jones expecting prices to rise 0.3% month over month and 3.7% annually.

New York Fed President John Williams struck a more measured tone on Tuesday, saying there was no need for urgency before the central bank's next meeting.