U.S. PCE Inflation Accelerates to 3.8%, Treasury Yields Fall on May 28

According to Jin10, U.S. PCE inflation rate accelerated to 3.8% from 3.5% on May 28, while Treasury yields retreated amid mixed economic signals. The 10-year Treasury yield fell to 4.485% from 4.508%, and the 2-year yield dropped to 4.045% from 4.070%. Durable goods orders rose 7.9%, exceeding consensus expectations of 3.5%, though gains were largely driven by non-defense aircraft equipment. Initial jobless claims increased to 215,000, suggesting faster corporate layoffs.

First-quarter GDP growth was downwardly revised to 1.6% from 2%, adding to concerns about economic momentum.