The U.S. 10-year Treasury yield edged lower on Friday as market participants awaited the release of the Producer Price Index (PPI) report.

The yield on the 10-year Treasury fell around 2 basis points to 4.075%. The yield on the 2-year Treasury was down by more than 2 basis points to 3.974%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

The yield on the 10-year Treasury briefly topped 4.1% in the previous session following commentary from Atlanta Federal Reserve President Raphael Bostic that suggested his openness to a cutting pause.

Bostic told the Wall Street Journal that he would be prepared for the Fed to hold rates steady at the November meeting if the data warrants it.

His comments followed hotter-than-expected U.S. inflation data on Thursday.

The U.S. Consumer Price Index (CPI) rose 0.2% in September and 2.4% year-over-year, which was above economists' estimates of a 0.1% increase on a monthly basis, and a 2.3% expansion over the last 12 months, according to a Dow Jones consensus.

Sticking on the data front, investors will turn their attention to the release of the latest PPI reading, which is expected at 8:30 a.m. ET. The PPI is a measure of final demand goods and services costs that producers receive.

A preliminary reading of consumer sentiment for October is scheduled to follow slightly later in the session.

— CNBC's Brian Evans contributed to this report.