The US 10-year Treasury yield rose to 5.3% on Wednesday, approaching its highest level since 2002, as the bond market appeared largely unshaken by softer-than-expected inflation data. The PCE price index rose 0.3% in August, below expectations for a 0.4% increase, while core PCE advanced 0.2%, also missing forecasts. Meanwhile, final Q2 GDP data showed the US economy expanded at an annualized rate of 2.2%, up from the earlier estimate of 1.5%, while the ADP report showed private-sector employment growth exceeded expectations in September. Treasury yields remain elevated as persistent energy-driven inflation and a resilient economy have reinforced expectations for further rate hikes. While expectations for a near-term hike eased following today’s data, markets are still largely expecting another hike in December.