U.S. Treasury yields were slightly lower on Friday after the Federal Reserve’s preferred inflation data came in mostly in line with economist expectations.
The benchmark 10-year Treasury yield fell more than 3 basis points to 4.518%. The 2-year Treasury yield was down more than 1 basis point to 4.912%.
Yields and prices have an inverted relationship. One basis point equal 0.01%.
The core reading for the personal consumption expenditures price index, which excludes food and energy costs, rose 0.2% in April. That matched estimates from economists surveyed by Dow Jones.
Core PCE was up 2.8% on a yearly basis, which was 0.1 percentage point above the forecast.
PCE was up 0.3% for the month and 2.7% year over year when including food and energy prices.
The PCE release comes after another key inflation measure, the consumer price index, came in at 3.4% for April on an annual basis. Core CPI increased 3.6% on a 12-month basis.
Inflation has…
