10-year Treasury yield trending greater forward of inflation information

US Treasury yields were slightly higher on Friday as investors await closely-watched inflation numbers to provide clues as to the Federal Reserve’s next interest rate move.

The return on the 10 year treasury note rose about 1 basis point to 3.6856%, while the US 2-year Treasury yield was little changed at 4.2636%.

Global bond markets sold off this week after the Bank of Japan adjusted its yield curve controls to cushion the impact of protracted monetary stimulus.

Yields have risen throughout the week as Fed investors remain concerned about the chances of a recession and what that could mean for monetary policy.

However, US government data released on Thursday showed that gross domestic product grew at an annual rate of 3.2% in the third quarter, up from a previous estimate of 2.9%. The economy contracted 0.6% in the second quarter.

The Bureau of Economic Analysis is due to release its November personal spending report — the Federal Reserve’s preferred measure of inflation — on Friday morning. The core personal consumption spending index, which excludes food and energy prices, is expected to have risen 0.2% in November — the same increase as in October, according to economists polled by Dow Jones.

The personal consumption expenditure price index could provide further clues as to whether inflation in the United States is moderating.

The Fed has been aggressively raising interest rates to bring down inflation, signaling that more rate hikes may be imminent. The central bank expects to raise interest rates to 5.1% before bringing inflation under control.

Data on US durable goods orders and new home sales will also be released on Friday.

— CNBC’s Samantha Subin contributed to this report.

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