Treasury Yields Fall as Investors Await Inflation Data

US Treasury yields fell on Wednesday, recovering some ground from the previous session's heavy selloff. The 30-year Treasury yield dropped to 5.553%, its lowest point since 2002.

The benchmark 10-year yield declined to 5.216%, while the two-year yield remained flat at 4.88%. This pullback came as investors turned their attention to the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures price index, for fresh clues about interest rates.

Markets were pricing a roughly 45% probability of a Fed rate hike at the October meeting, according to CME FedWatch. However, 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.