U.S. Treasury futures edged lower during the U.S. trading session following the release of the March CPI data, as investors shifted their focus to the weekend's U.S.-Iran peace negotiations scheduled to take place in Islamabad, Pakistan. The inflation figures generally aligned with expectations, although the month-over-month increase in core CPI came in slightly below forecasts, prompting a brief uptick in Treasury futures immediately after the data was published. Shortly after 3 p.m. New York time, yields across maturities resumed their climb, rising by 3 to 5 basis points across the curve as the market digested the CPI report. Short-term yields slightly outperformed, leading the yield spread between the 2-year and 10-year Treasuries to widen by approximately 1.5 basis points during the session. A late-session weakening in WTI futures helped Treasury futures recover from levels near their intraday lows. Oil prices oscillated between gains and losses, continuing to exert a dominant influence on Treasury price movements. As the week drew to a close, position unwinding remained a key theme in both futures and options markets. On Friday, the unwinding of positions in both call and put structures persisted. Ahead of the weekend's U.S.-Iran talks, market participants showed limited conviction regarding the near-term direction of yields. Trading volume in Treasury futures remained subdued, with volume at around 60% of the 20-day average as of 3 p.m. New York time. As of 3:40 p.m. ET, the 2-year Treasury yield stood at 3.8015%; the 5-year Treasury yield was at 3.9411%; the 10-year Treasury yield reached 4.315%; the 30-year Treasury yield was quoted at 4.9111%; the yield spread between the 2-year and 10-year Treasuries was 51.15 basis points; the spread between the 5-year and 30-year Treasuries measured 96.82 basis points.