U.S. Treasury yields were little changed on Friday afternoon as investors assessed the latest batch of inflation data and its implications for the Federal Reserve's next interest rate policy moves.
The 10-year Treasury yield was last down a basis point to trade at 3.841%. The 2-year Treasury yield rose 2 basis points to 4.902%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
The latest personal consumption expenditure price index data showed signs of easing inflation, rising inline with estimates for May, excluding food and energy. Year over year, the figure rose 4.6%, slightly below the 4.7% predicted by economists surveyed by Dow jones.
"The bond bulls had a collective sigh of relief Friday morning as May's core PCE deflator came in as expected," said Jack McIntyre, a portfolio manager, Brandywine Global. "I suspect the bond bears are nervous as well as it's hard to find any market participant with a lot of conviction these days."
Wall Street continued to monitor the outlook for interest rates, with traders pricing in a 84% chance of a rate hike at the central bank's July meeting, according to the CME Group's FedWatch tool.
Earlier this week, Fed Chairman Jerome Powell again indicated that rates would likely go higher as he believes further restriction is necessary to lower inflation. The process of bringing inflation closer to the central bank's 2% target range is also expected to take "a good while," he said Thursday.
— Jeff Cox contributed to this report