Daily brief
US September PCE core inflation +0.5% m/m vs +0.3% expected, 10s +6bp
Thu 29 Oct 2026
Treasuries (close 2026-10-28): 2s 4.67% (-3.0bp), 10s 5.05% (+6.0bp), 30s 5.37% (+7.0bp).
Tape (close 2026-10-28): VIX 16.91, 2s10s +38bp.
Narrative: Inflation surges, PCE shows. Fed pause on rate hikes unlikely to last long with prices still rising.
What mattered:
- US September PCE core inflation +0.5% m/m vs +0.3% expected
- Gross Domestic Product Price Index: 2.2
- ECB open to hiking rates in December if inflation outlook doesn't improve - report
- Strong US inflation and growth will keep Fed on a tightening path
- Fed holds, Warsh hedges, and traders dial back the tightening