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Treasury Yields Fall Slightly After Data Shows Rising Personal Income, Prices

NYSE

The key 10-year U.S. Treasury yield edged lower on Friday following consumer spending data that showed significant jumps in personal income and spending as well as a rise in prices.

The yield on the benchmark 10-year Treasury note fell slightly slightly to 1.629% around 2 p.m. ET. The yield on the 30-year Treasury bond was little changed 2.308%. Yields move inversely to prices.

Personal income and spending rose 21.1% and 4.2%, respectively, in March, according to the Bureau of Economic Analysis, as the economic recovery continued to gain momentum amid more federal stimulus.

The PCE Price Index rose 0.5%, while the core PCE Index, which excludes food and energy, rose 0.4% in the month. Economists surveyed by Dow Jones had penciled in a 0.3% rise for the core index.

The PCE inflation metric is watched closely by the Federal Reserve, and Chairman Jerome Powell warned earlier this week it may show a transitory increase in prices. The index had climbed 0.1% and 0.2% in the two prior months this year.

Yields rose during Thursday's session following the release of strong economic data for the first quarter.

The U.S. Commerce Department said first-quarter gross domestic product rose 6.4%, versus the 6.5% expected by economists polled by Dow Jones. Many economists expect growth to gain steam in the second quarter, with Goldman Sachs economists saying Friday that they expected 10.2% growth.

Meanwhile, the Labor Department reported that 553,000 new jobless claims were filed last week, just above the 528,000 estimated by economists.

There are no auctions due to be held Friday.

CNBC's Maggie Fitzgerald and Thomas Franck contributed to this report.

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