U.S. Q2 GDP Revised Up, August PCE Inflation Below Forecast, While Treasury Yields Hit Multi-Decade Highs

The U.S. economy's second-quarter annualized GDP growth was revised upwards to 2.2% from an initial 1.5%, indicating stronger economic activity. Concurrently, the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, rose by a lower-than-expected 3.4% year-on-year in August, with core PCE at 3.0%. Despite the softer inflation data, U.S. Treasury yields surged, with the 10-year yield reaching 5.3338% and the 30-year yield hitting 5.6702%, marking their highest levels in over two decades. U.S. consumer confidence also declined to its lowest point since 2014 in September.