10-year Treasury yield is steady as Fed's favorite inflation measure comes in a bit hot

U.S. Treasury yields edged higher after the Feds preferred gauge reflected an unexpected uptick in inflation.

The 10-year Treasury yield was unchanged at 4.253%, while the 2-year yield moved nearly 2 basis points higher to 3.732%. The 30-year yield was little changed at 4.821%.

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

Core inflation rate rose to 2.7% in May, coming out higher than expected, according to fresh data from a Commerce Department report Friday.

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

Investors continue to monitor U.S. President Donald Trump's renewed threats against Fed Chairman Jerome Powell.

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.