Treasury yields little changed ahead of key inflation data release

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U.S. Treasury yields were nearly flat on Friday as investors awaited key economic data, including the Federal Reserve’s preferred inflation measure.

At 4.10 a.m. ET, the 10-year Treasury yield rose less than 1 basis point to 4.076%, as did the 30-year Treasury bond yield to 4.705%. The 2-year Treasury note yield was also flat at 3.47%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

The health of the U.S. economy will be a core focus for investors on Friday, with the release of the personal consumption expenditures index and gross domestic product report for the fourth quarter at 8:30 a.m. ET.

The PCE report is expected to show headline inflation rising to 2.8% on a yearly basis, according to economists polled by Dow Jones. Core PCE, which excludes volatile food and energy prices, is forecasted to have risen 3% over the year.

Economists polled by Dow Jones expect the GDP report to show real GDP has increased 2.5%.

The U.S. Supreme Court may release a ruling on the legality of Trump’s tariffs under the International Emergency Economic Powers Act on Friday or next week.

Investors are also monitoring U.S.-Iran tensions after U.S. President Donald Trump said on Thursday he would decide whether to take military action against Iran in the next 10 days.

— CNBC’s Pia Singh contributed to this report

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