NEW YORK, Feb 16 (Reuters) - U.S. Treasury yields rose from their lows on Friday after data showed stronger-than-expected housing starts and import prices, suggesting that inflation was on the rise and the economy on a stable growth path.
The reports backed a growing belief that the Federal Reserve could hike interest rates at a faster-than-expected pace this year.
Data showed on Friday that housing starts jumped 9.7 percent to a seasonally adjusted annual rate of 1.326 million units, the highest level since October 2016. That followed an upwardly revised sales pace of 1.209 million units.
Meanwhile U.S. import prices grew more than expected, rising 1.0 percent in January, boosting the outlook for inflation in the coming months.
In morning trading, U.S. benchmark 10-year Treasury note yields rose to 2.8840 percent after the data, from 2.8804 percent just before the release of the numbers.
U.S. 30-year yields increased to 3.1332 percent, from 3.1316 percent before the data.
However, both maturities were still down on the day, compared with the previous session’s levels. (Reporting by Gertrude Chavez-Dreyfuss Editing by Chizu Nomiyama)