WASHINGTON (dpa-AFX) - Treasuries moved to the downside during trading on Friday, giving back ground after trending higher over the past several sessions.
Bond prices regained some ground after an early pullback but once again came under pressure going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.0 basis points to 4.283 percent.
The increase on the day came after the ten-year yield ended the previous session at its lowest closing level in almost two months.
The early pullback by treasuries came after the Commerce Department released a closely watched report that included the Federal Reserve's preferred readings on consumer price inflation.
While the report showed consumer prices in the U.S. crept up in line with expectations in the month of May, the report also showed core consumer prices rose by slightly more than expected.
The report said the personal consumption expenditures (PCE) price index inched up by 0.1 percent in May, matching the uptick seen in April as well as economist estimates.
The annual rate of growth by the PCE price index accelerated to 2.3 percent in May from 2.2 percent in April, which also matched expectations.
Meanwhile, the core PCE price index, which excludes food and energy prices, rose by 0.2 percent in May after inching up by 0.1 percent in April. Economists had expected another 0.1 percent uptick.
The annual rate of growth by the core PCE price index also accelerated to 2.7 percent in May from an upwardly revised 2.6 percent in April.
Economists had expected annual rate of growth by the core PCE price index to tick up to 2.6 percent from the 2.5 percent originally reported for the previous month.
Treasuries regained some ground as the day progressed but once again came under pressure after President Donald Trump said he is ending trade talks with Canada due to the country imposing a digital services tax on U.S. technology companies.
'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Trump said in a post on Truth Social.
While treasuries are typically seen as a safe haven, concerns the trade dispute with Canada will lead to higher inflation may have generated renewed selling pressure.
The monthly jobs report is likely to be in focus next week, while traders are also likely to keep an eye on reports on manufacturing and service sector activity and the U.S. trade deficit.
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