The yield on 10-year Treasury note hit a one-month high on Friday, on pace to post its biggest weekly gain since April after recent data showed hotter-than-expected inflation.

The rate on the benchmark Treasury note, which moves inversely to price, rose to 2.1310%, the highest since June 11. The yield on the 30-year Treasury bond was also higher at around 2.6535%.

The U.S. consumer price index — a widely followed measure of inflation — rose more than expected last month, with the core CPI posting its biggest gain in one and a half years.

The Labor Department said on Friday its producer price index for final demand edged up 0.1% last month after a similar gain in May. Economists polled by Reuters had forecast the PPI unchanged in June.

"Another core inflation surprise... PPI drives in-range down trade," Ian Lyngen, head of U.S. rates strategy at BMO, said in a note. The inflation number is "marginally bearish for the Treasury market and as yields come off this morning's lows."

The yield on the benchmark 10-year note had fallen below 2% this month on expectations global central banks would respond to a slowing global economy with more monetary stimulus. The rate started coming back after a blowout June jobs report boosted the confidence on the U.S. economy.

Wall Street rallied to a record high on Thursday, after testimony by Federal Reserve Chair Jerome Powell this week that signaled easier monetary policy could be implemented later this month.