The yield on the 10-year Treasury rose on Friday as investors digested the latest batch of inflation data.
The yield on the benchmark 10-year note was nearly 6 basis points higher at 3.923%. The yield on the 2-year Treasury gained nearly 4 basis points to 3.929%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Yields ticked higher after the release of the personal consumption expenditures price index. The Federal Reserve's preferred inflation indicator rose 0.2% in July, matching expectations from economists, according to Dow Jones.
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The PCE reading, a sprawling measure of what consumers are paying for a variety of goods and services, could influence the Fed's outlook for interest rates.
It comes after economic data released Thursday further eased recession concerns. Weekly jobless claims fell from the prior week, while second-quarter gross domestic product was revised higher to 3% growth from an initial 2.8% rate.
Money Report
Fed Chair Jerome Powell said last week that "the time has come for policy to adjust," bolstering expectations for a rate cut at the central bank's next meeting. Powell declined to provide exact indications on the timing or extent of the cut, however.
Market participants have fully priced in a rate cut at the Fed's Sept. 18 meeting. Traders are currently pricing in a roughly 69% chance of a 25-basis-point rate cut next month, with nearly 31% pricing in a 50-basis-point rate cut, according to the CME Group's FedWatch Tool.
— CNBC's Jeff Cox contributed to this report.
