U.S. Treasury yields declined on Friday as data showed a key inflation reading for May cooled in line with expectations, strengthening the case for monetary policy easing this year.

Excluding the volatile food and energy components, the May price index for personal consumption expenditures (PCE), one of the Federal Reserve's favored measures of inflation, increased 0.1% in May and 2.6% annually, both prints in line with forecasts.

Benchmark 10-year yields, which move inversely to prices, were down some three basis points to about 4.27% after the release, while two-year yields shed four points to 4.69%.

(Reporting by Davide Barbuscia; Editing by Chizu Nomiyama)