Treasury yields inch higher as investors await the Fed's preferred inflation print

U.S. Treasury yields inched higher on Friday as investors awaited the release of a key inflation measure preferred by the Federal Reserve, as well as monitored U.S. President Donald Trump's renewed threats against Fed Chairman Jerome Powell.

At 5:22 a.m. ET, the 10-year Treasury yield was up over one basis point to 4.274%, while the 2-year yield moved 3 basis points higher to 3.75%. The 30-year yield was little changed at 4.827%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

The big event on Friday will be the release of the PCE report for May, which investors will review for fresh clues about the future monetary policy of the world's largest economy.

Economists polled by Dow Jones expect a headline inflation rise to 2.3% while core inflation which excludes volatile food and energy prices is forecasted to tick up to 2.6%. That's higher than the 2.1% and 2.5%, respectively, in April.

Investors are also keeping track of data on personal income, consumer spending and consumer sentiment.

Trump renewed his attacks against Powell after the central bank leader testified before Congress on Tuesday and Wednesday, reiterating the Fed's wait-and-see approach to hold interest rates until the impacts of tariffs on the economy become clearer.

Trump has said that he has a list of “three or four people” who could succeed Powell sooner than the end of his term as chairman in 2026. Trump is expected to announce the successor as soon as September or October, per reports.