The 2-year Treasury yield rose Friday as investors awaited economic data that could affect Federal Reserve interest rate policy and as debt ceiling deal talks continued.
The 2-year Treasury yield was trading at 4.568% after rising 10 basis points. The yield on the 10-year Treasury fell by 1 basis point to 3.810%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Investors absorbed Friday's release of the personal consumption expenditures price index for April, which is the Fed's preferred inflation gauge. Inflation rose 0.4% in April, stronger than the 0.3% expected by economists polled by Dow Jones. On an annual basis, the measure rose 4.7% from a year ago, also higher than estimates.
In recent weeks, Fed officials have given mixed messages about what could be next for interest rates.
Some have indicated that they would prefer to pause the Fed's rate-hiking campaign as they do not believe the full effect of elevated rates has filtered through to the economy yet. Others appeared to believe further rate hikes may be necessary to bring inflation down, or said decisions would depend on upcoming economic data.
Investors continued to watch debt ceiling deal negotiations as the June 1 deadline at which the U.S. could default on its debt obligations draws closer. Talks seemed to progress closer to a deal on Thursday, but "sensitive issues" were still being discussed, Republican negotiator Rep. Patrick McHenry said Thursday.
— CNBC's Jeff Cox contributed to this report.