Treasury yields are little changed as traders weigh latest economic data

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Treasury yields were little changed Friday as traders pored through the latest U.S. economic data in search of clues for when the Federal Reserve may cut rates.

The 10-year Treasury yield was less than a basis point higher at 4.255%. The 2-year Treasury note yield was flat at 4.73%.

Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.

S&P Global "flash" readings released Friday showed activity in the U.S. services sector hit its highest level in more than two years this month with a PMI of 55.1. Manufacturing also improved.

Investors have been contending with a volley of data this week that suggests the economy may be slowing. For instance, initial jobless claims data released Thursday showed an increase from a week ago, while housing starts fell more than expected last month.

The number of Americans filing new claims for unemployment benefits dropped by 5,000 to 238,000 for the week ended June 15. Economists polled by Reuters had forecast 235,000 claims for that period.

Housing starts, a key metric for real estate investors, were down 5.5% to a seasonally adjusted annual rate of 1.277 million units in May, according to a report from the Commerce Department's Census Bureau. A reading of the Philadelphia Fed Manufacturing Index also came in worse than expected, contributing to recent signs of a slowing economy.

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