The 10-year U.S. Treasury yield was little changed Friday after the Federal Reserve’s key inflation gauge rose at its fastest clip since 1983 in December.
The yield on the benchmark 10-year Treasury note was less than a basis point lower to 1.803% at around 10:00 a.m. ET. The yield on the 30-year Treasury bond rose 1.9 basis points to 2.11%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
December’s personal consumption expenditures index, which is the Federal Reserve’s primary inflation measure, increased 4.9% from a year ago, the Commerce Department reported Friday. This was the biggest gain going back to September 1983.
The personal consumption expenditures price index excluding food and energy was slightly more than the 4.8% Dow Jones estimate. The monthly gain of 0.5% was in line with expectations.
Investors will be watching the data closely, given that the Fed indicated after its latest policy meeting this week that it could start raising interest rates in March in an attempt to help curb inflation.
—CNBC’s Maggie Fitzgerald contributed to this report.
