U.S. Treasury yields declined on Friday as investors digested this week's economic data and assessed what it could mean for Federal Reserve interest rates.

The yield on the 10-year Treasury was down by nearly 9 basis points at 4.625%. The 2-year Treasury yield was nearly 2 basis points lower at 5.052%.

Yields and prices have an inverted relationship. One basis point equals 0.01%.

Investors weighed the outlook for interest rates following remarks from Fed officials and the latest inflation data. Philadelphia Federal Reserve President Patrick Harker said earlier Friday he thinks the central bank can "hold rates where they are."

The consumer price index for September, published Thursday, came in slightly higher than forecast at 0.4% on a monthly basis and 3.7% on an annual basis. Economists previously surveyed by Dow Jones were expecting increases of 0.3% and 3.6% respectively.

Earlier in the week September's producer price index, which reflects price changes at the wholesale level, had also come in above expectations.

This comes as uncertainty about the Fed's monetary policy plans has grown in recent weeks as policymakers appear to have differing views on whether interest rates need to be hiked higher still.

Recent spikes in Treasury yields prompted various officials to suggest that rates have been raised sufficiently to ease the economy and cool inflation, however others have been more cautious and noted that this will depend on how inflation develops.

Two central bank meetings remain this year, the first on Oct. 31 and Nov. 1 and the second in December. Markets are currently pricing in only a small chance of a rate hike in November.

On Friday, investors will be watching September's import and export price figures, as well as the preliminary October consumer sentiment report from the University of Michigan.