treasury yields held steady near recent lows on friday as investors shrugged off the 5 annual jump in inflation reported in the previous session and appeared to buy the federal reserves argument that the price increases will be temporary the yield on the benchmark 10year treasury note was unchanged at 1455 at 400 pm et the yield on the 30year treasury bond ticked down to to 2142 yields move inversely to prices at one point on friday morning the 10year yield traded at 1428 its lowest level since march 3 the 30year hit its lowest level since feb 26 the core consumer price index rose 5 in may on a yearonyear basis the highest since the summer of 2008 and above the 47 increase expected by economists polled by dow jones excluding food and energy core cpi rose 38 year over year the highest pace since 1992 a third of the increase was attributed to a sharp 73 rise in used car and truck prices despite that yields are down significantly from march when the 10year traded above 17 as the economic reopening gained steam the benchmark yield was trading above 16 just a week ago fed officials including chair jay powell have repeatedly stressed that high inflation readings are to be expected in the in the spring and summer but will likely be transitory the central bank has said it is willing to let inflation run above its traditional 2 target as the economy recovers from the pandemic bleakley advisory groups peter boockvar who is skeptical that inflation will be transitory said in a note on friday that price increases will broaden out in the months ahead i understand it will be hard to maintain the aggressive increases in used car prices that many are cherry picking as a reason for transitory but i also believe that we are just at the beginning of broad price increases in just about everything else and rent increases on the services side the biggest component of cpi you aint seen nothin yet boockvar said the university of michigan released its national data for june on economic indicators friday morning its preliminary consumer sentiment index increased to 864 from 829 in may oneyear inflation expectations fell to 40 from 46 in may and fiveto10year inflation expectations dropped to 28 from 30 there are no auctions due to be held friday