The Fed's Preferred Inflation Gauge Declined More Than Expected in August, Yet Bond Yields Aren't Budging. Here's One Reason Why.

Key Points Longer-term bond yields initially retreated, but had risen, as of this writing. The way the Personal Consumption Expenditures (PCE) price index is calculated changed, starting in August. Following the PCE report, the market now sees a lower likelihood of a Fed rate hike in October. These 10 stocks could mint the next wave of millionaires › Investors hoping for signs of softening inflation seemingly got what they wanted on Sept. 30 when the Federal Reserve's preferred inflation gauge came in much lighter than expected. The Personal Consumption Expenditures (PCE)Price Index increased 0.3% seasonally adjusted in August, coming in at 3.4% year over year. Economists had been projecting increases of 0.3% and 3.7%, respectively.