"Today's data shows that inflation is coming down, but it's lingering and is stickier than most assume," he said. Treasury yields rose, suggesting higher rates ahead for the long term, with the benchmarket 10-year yield up 10.2 basis points to 3.595%. The two-year note , which often moves in step with rate expectations, rose 3.2 basis points to 4.344%. Oil prices rose but both benchmarks were set for a weekly loss as worries over a weak economic outlook in China, Europe and the United States weighed on oil demand. Gold prices rose despite an uptick in the dollar and Treasury yields as some investors still expect the Fed will slow the pace of rate hikes from early next year.

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