Hi Peter,
That's a tight tolerance considering the high expansion coefficient
of PFTE, much temperature change and it'll be out of spec. My
suggestion though would be what I made some years back for a job I do
from time to time turning parts out of acetal bar and the same problem
with the rod being over the size required, basically a travelling steady
with ball bearing tips to support the rod and a turning tool built in
right next to the rollers, in my case I mount it in the toolpost and run
it down the rod. Maybe you could mount something similar in a vice and
feed the rod through using a drill to turn it. Food for thought maybe.