Softer-than-expected inflation in May drives up demand for U.S. government debt, lowering Treasury yields. The impact of tariffs on consumer prices remains unclear, as annual CPI ticks up to 2.4% from 2.

U.S. Treasury yields fell on Friday, amid a global flight to safety in the wake of Israeli airstrikes on Iran. The yield on the benchmark 10-year Treasury moved 2 basis points lower to 4.334% at 3:02 a.m. ET. Yields on 2- and 5-year notes were around 2 basis points lower, while long-dated Treasurys also cooled.