US Treasury yields continue to retreat ahead of PCE data

US Treasury bond yields are declining amid anticipation of key US inflation data, namely, the Personal Consumption Expenditures data, the most important, credible and reliable indicator for the Federal Reserve.

PCE data in the United States will shed more light on price trends in the recent months, and thus will clarify the future path of monetary policy or interest rate outlook in the months ahead.

It is broadly expected that the PCE figures will witness a slight increase, the figures are scheduled to be released on Friday, which will be consistent with the latest inflation readings for February issued before the latest FOMC decision announcement to keep the interest rate at the same levels in the 5.25%-5.50% area for the fifth meeting in a row.

US Treasury bond yields fell under pressure amid speculations that expectations of a limited rise in consumer prices in the United States will not be met, which led to yields to follow on the path of the US dollar. The US dollar has barely consolidated in the upward direction since the beginning of daily trading on Wednesday.

Benchmark Ten-year US Treasury bond yields fell to 4.194% compared to the last daily close at 4.238%. it is worth mentioning that yields rose to their highest level on the day at 4.246%, versus the lowest level at 4.186%.