From Wall Street Journal:



Yields on U.S. Treasurys finished mixed on Friday, with the yield on the 2-year Treasury note falling to its lowest level since May 23 and the 10-year Treasury note rising. This was in response to data showing a slowdown in inflation in November, with the PCE index dipping 0.1% and year-over-year inflation dropping to 2.6%. The core PCE rate also rose 0.1% in November, matching economist forecasts, and the increase over the past 12 months decelerated to 3.2%. Consumer sentiment ended the year on a high note, while orders for durable goods rebounded 5.4% in November, and new home sales plunged. Bond traders had a shortened session on Friday, with financial markets closed on Christmas Day. Analysts noted that the market was biased for a downside surprise in the inflation data, leading to a somewhat counterintuitive price response.



Original: Treasury yields end mostly higher after subdued U.S. inflation reading in holiday-shortened session