TREASURIES-Yields decline slightly after US inflation data

NEW YORK, March 28 (Reuters) - U.S. Treasury yields had a relatively muted response to the release on Friday of the U.S. Personal Consumption Expenditure data, the Federal Reserve's favored indicator for inflation.

The Personal Consumption Expenditures (PCE) price index increased 0.3% in February, in line with forecasts, after advancing by an unrevised 0.3% in January. In the 12 months through February, prices increased 2.5%, matching January's rise.

Yields edged higher immediately after the data but then pared back those increases and were last seen declining marginally, with the 10-year yield US10YT=RR last at 4.31%, about two basis points below where it was before the data and about six points lower on the day.