Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Nov. 25, 2025.
Brendan McDermid | Reuters
U.S. Treasury yields were higher on Friday as investors digested a tame inflation print and awaited more economic data to end the week.
The 10-year Treasury yield rose more than 3 basis points to 4.147%, while the 2-year Treasury yield was up more than 2 basis points at 3.485%. The 30-year Treasury bond yield increased more than 2 basis points to 4.823%.
One basis point is equal to 0.01%, and yields and prices have an inverse relationship.
Investors are still weighing up a lighter-than-expected inflation reading from Thursday, after the consumer price index rose at a 2.7% yearly rate in November, Economists polled by Dow Jones expected CPI to have risen 3.1%.
The delayed Bureau of Labor Statistics report also showed that core CPI, which excludes volatile food and energy prices, increased 2.6% yearly, and had been forecasted to increase by 3%.
The downward trend in inflation gave investors some hope that the Federal Reserve will lower rates in 2026. While odds for a January rate cut remain low, traders are pricing in a 56.8% chance of a March reduction, according to the CME Group’s FedWatch tool. This was up from around 53.9% on Wednesday.
— Fred Imbert contributed to this report