treasury yields ticked higher friday with the rate on the policy sensitive 2year note bounding off a three month low set the previous session after data showed us inflation continued to cool in december what yields are doing   the yield on the 2year treasury note tmubmusd02y rose 37 basis points to 4165 after ending the us session thursday at its lowest since early october   the yield on the 30year treasury bond tmubmusd30y was up 45 basis points at 3627 yields on 10year notes and 30year bonds ended thursday at their lowest since middecember yields have fallen led by shorter maturities as data has fueled expectations for the federal reserve to downshift the size of its rate hikes in 2023 the december consumer price index on thursday showed inflation continued to cool in line with forecasts while philadelphia federal reserve bank president patrick harker said it would likely be appropriate for the central bank to lift rates in increments of 25 basis points or a quarter of a percentage point the fed last year delivered a several super size 50 and 75basispoint increases the university of michigan’s preliminary january consumersentiment index is due at 10 am eastern the data includes a gauge of consumer inflation expectations us markets will be closed monday for the martin luther king jr day holiday “with both the headline and core us inflation readings matching consensus expectations exactly swings in bond markets were muted however they gathered steam as more fomc participants raised the likelihood of just a 25bp basis point rate hike at the next meeting” said analysts at unicredit bank in a friday note “there are now two 25bp rate hikes priced in for the next two meetings with the possibility of a third 25bp hike in 2q23 already considered too close to call” they wrote