U.S. Treasury Yields Steady Amid Strong GDP Growth

U.S. Treasury yields remained steady on Thursday following the release of economic data showing a resilient economy. The advance estimate for third-quarter GDP surged at an annualized rate of 3.4%, surpassing the 3.2% consensus. Inflation data also met expectations, with the headline Personal Consumption Expenditures price index rising 0.5% month-on-month and the annual core rate reaching 3.1%.

Kevin Warsh, Chair of the Federal Open Market Committee, described the economic expansion as proceeding at a "strong pace." In response to these conditions, the Federal Open Market Committee voted 10-2 to maintain the federal funds rate at 3.75% to 4.00%, although two members dissented in favor of a rate hike.

Across the Atlantic, investors are awaiting a decision from the European Central Bank. Policymakers are expected to keep the deposit rate at 2.50% despite September inflation hitting 3.8% and energy costs rising due to the Iran conflict. Christine Lagarde, President of the European Central Bank, stated that tightening financial conditions will curb growth and inflation. In France, surging government bond yields have already tightened financial conditions for the debt-laden nation.