The 10-year U.S. Treasury yield was higher Friday as investors digested a key inflation measure that came in line with expectations.
The 10-year Treasury yield was up nearly 10 basis points at 4.384%. The 2-year Treasury yield was last at 4.747% after rising 3 basis points.
Yields and prices move in opposite directions. One basis point equals 0.01%.
The May personal consumption expenditures price index, which is the Federal Reserve's preferred inflation gauge, showed a gain of 0.1% for the month, and an increase of 2.6% from a year ago, the Commerce Department reported Friday.
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The report came in line with what economists polled by Dow Jones had been anticipating. It also marked the lowest annual rate since March 2021.
The data comes as uncertainty about what could be next for interest rates has persisted. Federal Reserve policymakers have frequently indicated they would only move to cut rates once data showed that inflation was easing toward the 2% target.
Markets were last pricing in the chance of two quarter-percentage-point rate cuts this year, with the first likely to come in September, according to CME Group's FedWatch Tool.
Money Report
Earlier in the week, Fed Governor Michelle Bowman also suggested that she was open to a further rate increase, depending on how inflation developed.
