Yields were lower on 2-year and 10-year US Treasuries on Wednesday after expectations decreased for a Federal Reserve interest rate hike in October after data showed that US inflation increased less than expected in August.
But trading was choppy after the Commerce Department's Bureau of Economic Analysis said that the Personal Consumption Expenditures Price Index rose 0.3% last month after a downwardly revised 0.1% gain in July. Core PCE inflation increased 3.0% year-on-year in August after a downwardly revised 3.0% advance in July. Underlying inflation was first estimated to have risen 3.3% in the 12 months through July.
