Markets Await Critical US PCE Inflation and GDP Data as Treasury Yields Surge

Financial markets are bracing for a heavy slate of U.S. economic data, led by the Core PCE Price Index and revised GDP figures. Headline PCE inflation is projected at 3.7%, with core PCE expected to rise 0.3% month-over-month and 3.3% to 3.4% annually. U.S. GDP growth is anticipated at 1.5%, down from the prior 2.1% pace. The prints follow the Federal Reserve's first rate hike in three years, which lifted 10-year Treasury yields above 5% to 19-year highs as bond markets price in four additional rate increases by June 2027.