Traders work on the New York Stock Exchange (NYSE) floor on September 13, 2024, in New York City.
U.S. Treasury yields dipped on Friday after the release of key inflation data that showed the rate of price increases is close to the Federal Reserve's target.
The yield on the 10-year Treasury was down about 3.5 basis points at 3.756%. The 2-year Treasury yield slipped to 3.567% after falling by 5.6 points.
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Yields and prices have an inverted relationship. One basis point equals 0.01%.
On Friday, investors focused on the release of August's personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge. The PCE price index rose 0.1% month over month in August, and it grew 2.2% over the past 12 months. Economists surveyed by Dow Jones were expecting readings of 0.1% and 2.3%, respectively.
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The reports showed that the PCE price index rose 0.1% month over month in August and is up 2.2% over the past year. Economists surveyed by Dow Jones were expecting readings of 0.1% and 2.3%, respectively.
The core PCE price index, which excludes food and energy costs, rose 0.1% month over month and 2.7% for the year, matching expectations.
The U.S. central bank targets a 2% annual inflation rate.
Money Report
The PCE data comes as investors have been giving renewed attention to the state of the economy after the Fed announced a hotly anticipated interest rate cut earlier in the month.
Data published Thursday calmed questions about whether there could be an economic downturn ahead and indicated to some investors that the Fed's reasoning for cutting rates was not in fact a weakening economy.
The final reading of the second-quarter gross domestic product was unrevised, remaining at 3%, while weekly initial jobless claims pulled back by more than expected and durable goods orders for August were unchanged compared to the forecast decline.
— CNBC's Jesse Pound contributed reporting.
