Treasuries-Yields edge up on steady inflation, ahead of Jackson Hole
TLT•Iran and Oman developments
Iran and Oman have reached agreement on their share of the Strait of Hormuz and its revenues, but the vital waterway will not be reopened if the U.S. does not accept their conditions, Iran's Revolutionary Guards said on Wednesday.
PCE inflation and rate expectations
The Personal Consumption Expenditures Price Index increased 3.7% in the 12 months through July, unchanged from June. Economists polled by Reuters had forecast a reading for PCE, which the Fed uses to set its target, of 3.6%.
Core prices, which exclude food and energy, rose 3.3% on the year, in line with economists’ expectations.
“Core-PCE was consistent with the Fed's characterization of the July inflation data as somewhat encouraging, but sufficient to keep the risk of a September 16 rate hike in play as Jackson Hole approaches,” said Vail Hartman, U.S. rates strategist at BMO Capital Markets.
