Dollar and Treasury Yields Decline Ahead of Key Inflation Data

U.S. Treasury yields and the dollar both declined on Friday ahead of the release of the August core personal-consumption expenditures (PCE) index, which is the Federal Reserve’s [preferred measure of inflation](https://ift.tt/CT9sigV). The U.S. Dollar Index, which measures the greenback against a basket of six peers, fell 0.5% on Friday to 105.70, its lowest level since Monday. Treasury yields and the dollar had surged since last week—with the 10-year yield hitting its highest level since November 2007—after the Federal Reserve signaled that further interest-rate hikes may be necessary to sufficiently tame inflation.