U.S. Treasury yields were little changed on Friday as investors digested this week's inflation data and assessed what it could mean for the future of the economy and Federal Reserve monetary policy.
The yield on the 10-year Treasury was added 6.4 basis points to 3.459%. The yield on the 2-year Treasury was trading climbed 9 basis points to trade at 3.994%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
Investors assessed the outlook for the economy as multiple key inflation readings came in lower than expected this week.
On Thursday, April's producer price index reflected a 0.2% increase of wholesale prices on a monthly basis, lower than the 0.3% rise economists surveyed by Dow Jones had previously expected.
Earlier in the week, the consumer price index print for April had come in 0.1% less than anticipated at 4.9% on a year-over-year basis. It rose 0.4% from March, which was in line with expectations.
The latest inflation figures are likely to inform upcoming monetary policy decisions from the Federal Reserve, which has been hiking rates in an effort to cool the economy since March 2022. Concerns about that leading the economy into a recession have grown louder in recent weeks.
After its latest meeting, the Fed hinted that its rate hiking campaign may be paused soon, but Chairman Jerome Powell noted that battle against inflation was not over and policy decisions remained data-dependent.
Data out Friday showed import prices climbed 0.4% in April, marking the first rise in 2023. Economists polled by Dow Jones had forecasted a 0.2% rise last month.