U.S. Treasury yields ahead of Fed-favored inflation measure [Video]

U.S. Treasury yields were slightly higher on Thursday as investors awaited the release of the Federal Reserve’s preferred inflation measure.

At 7:18 a.m. ET, the 10-year Treasury yield was up by over 3 basis point at 4.305%. The yield on the 2-year Treasury was more than 3 basis points higher at 4.687%.

Yields and prices have an inverted relationship and one basis point equals 0.01%.

Investors looked ahead to the release of the personal consumption expenditures report for January, which could provide clues about the outlook for interest rates.

Economists surveyed by Dow Jones are expecting an increase of 0.3% on a monthly and 2.4% on an annual basis. In December, the index was 0.2% higher for the month and 2.6% from a year earlier.

The PCE is the Fed’s favored inflation gauge. If January’s reading comes in higher than expected, markets may take it as a signal that inflation is stickier than previously expected and interest rates …