The U.S. Department of Commerce reported on Wednesday that the Personal Consumption Expenditures (PCE) price index rose by 3.7% year-on-year in July, remaining flat with June and still well above the Federal Reserve's 2% target. Excluding volatile food and energy, core PCE inflation also held at an annualized rate of 3.3%.

The report also indicated that the U.S. economy grew at an annualized rate of 1.5% in the second quarter, lower than the 2.1% in the first quarter. In response to persistently high long-term interest rates, U.S. Treasury Secretary Scott Bessent announced that the Treasury will double the size of its buybacks of 10- to 30-year long-term bonds starting next month. Previously, the yield on 30-year U.S. Treasury bonds briefly touched a 19-year high earlier this month.