Market Update: Treasury Yields Rise Despite Slower GDP Growth and Inflation Worries

Despite slower-than-expected GDP growth, Treasury yields rose with the 10-year yield up over 6 basis points to 3.49% and the 2-year yield climbing 11 basis points to top 4%. The increase in the personal consumption expenditures price index, an inflation measure that the Federal Reserve follows closely, may have influenced the bond market. The data could impact policy decisions made by the Fed at its meeting next week, where a 25 basis point interest rate hike is expected.