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NEW YORK, March 31 (Reuters) - U.S. Treasury debt yields edged higher on Friday after data showed the largest annual increase in U.S. inflation in nearly five years, underpinning more interest rate hikes by the Federal Reserve this year.
The personal consumption expenditures (PCE) price index gained 0.1 percent last month after jumping 0.4 percent in January. That lifted the year-on-year rate of increase in the PCE price index to 2.1 percent, which was the biggest year-on-year gain since April 2012 and followed a 1.9 percent rise in January. nLNNVEEDCX]
The other components of the data though were more subdued with consumer spending barely rising in February with a 0.1 percent gain.
In early morning trading, benchmark 10-year notes flat to slightly lower in price to yield 2.419 percent. Yields rose as high as 2.423 percent, from 2.418 percent before the data's release. (Reporting by Gertrude Chavez-Dreyfuss)