US Treasury Storm Intensifies Ahead of Key Data and Earnings Reports

The U.S. Treasury storm is intensifying as investors await key economic data and earnings reports next week.

The Federal Reserve's policy trajectory will remain a central focus of trading activity, with inflation concerns driving interest-rate hike expectations.

Next Wednesday, the U.S. Bureau of Economic Analysis will release August Personal Consumption Expenditures (PCE) price index data, which is expected to show an overall year-on-year increase of 3.7% and a core PCE year-over-year rise of 3.3%, both above the Federal Reserve's 2% long-term inflation target.

The release will also include revised PCE components using a new price-deflation methodology, which could lower some prior core PCE year-over-year readings by roughly 0.1 to 0.2 percentage points.