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US Treasury yields fall as investors digest economic data, Fed speeches

U.S. government debt yieldsfell Friday, as investors digested another round of economic data and a batch of speeches set to be given by leading Federal Reserve members.

The yield on the benchmark 10-year Treasury note sat lower at around 2.277 percent at 2:39 p.m. ET, while the yield on the 30-year Treasury bond was down at 2.81 percent. Bond yields move inversely to prices.

The 10-year Treasury note yield neared a session low of 2.273 percent, which would be its lowest level since Sep. 27, when it yielded as low as 2.237 percent.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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U.S. consumer prices recorded their biggest increase in eight months in September as gasoline prices soared in the wake of hurricane-related production disruptions at oil refineries in the Gulf Coast area, but underlying inflation remained muted, reported Reuters.

The Labor Department said on Friday its Consumer Price Index jumped 0.5 percent last month after advancing 0.4 percent in August. Economists polled by Reuters had forecast the CPI surging 0.6 percent in September and accelerating 2.3 percent year-on-year.

Investors have been hunting for any signs of inflation as Federal Reserve officials debate over the timing of future rate hikes. It became even more apparent in the minutes of the Federal Open Market Committee's September meeting that there remains disagreement between central bankers on whether the economy is ready for a new hike in December.

Consumer sentiment hit 101.1 in October versus 95 estimate, the highest level recorded from the University of Michigan since 2004, when consumer sentiment hit 107.6.

Boston Fed President Eric Rosengren acknowledged that it is essential for policymakers like himself to look to policy rules for guidance.

However, Rosengren said it could be counterproductive to limit the bank to strict because they do not always capture all the policy options a central bank may need, nor do they always reflect changes in economic projections, reported Reuters.

Fed Chair Janet Yellen will join other leading central bankers to deliver remarks on the economy and monetary policy at the 32nd Annual G30 International Banking Seminar in Washington on Sunday. A conversation that should keep investors talking Monday.

In other news, just hours after President Donald Trump signed an executive order related to health care Thursday, the U.S. administration announced that it would stop making crucial payment to insurers who sell Obamacare health plans.

The president said on Friday he will scrap the Iran nuclear deal if Congress and U.S. allies do not reach a solution under a plan his administration has put forward.

"In the event we are not able to reach a solution working with Congress and our allies, then the agreement will be terminated," Trump said. "It is under continuous review and our participation can be canceled by me, as president, at any time."

—CNBC's Dan Mangan and Gina Francolla contributed to this report