U.S. Treasury yields fall on key inflation data [Video]

The U.S. 10-year Treasury yield fell Friday as traders parsed the closely watched inflation data released earlier in the day.

The 10-year Treasury yield slipped around 4 points to 4.667%. The yield on the 2-year Treasury lost almost a basis point to trade at, 4.987%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

March’s core personal consumption expenditures price index excluding food and energy came in at 2.8% on an annualized basis, slightly above the 2.7% rate anticipated by economists polled by Dow Jones. Including food and energy, the Fed’s preferred inflation gauge increased 2.7% from a year ago, also higher than the consensus forecast of 2.6%.

Both measures rose 0.3% month over month, in line with expectations.

“There wasn’t any startling news,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. “It mostly matched expectations, or at least prior numbers, to suggest once again that inflation is at least moderating to a point that keeps the prospects of a rate cut …