The 10-year yield remains relatively stable at around 4.14% following another positive inflation report.

On Friday, the 10-year U.S. Treasury yield remained unchanged as investors evaluated another positive inflation report, indicating that the Federal Reserve may begin reducing rates later this year.

The yield on the benchmark was up by less than 1 basis point at 4.141%, while the yield was higher by roughly 4 basis points at 4.357%.

Yields move inversely to prices, and a basis point equals 0.01%.

The Fed's preferred inflation reading, which rose 0.2% last month and was up 2.9% from a year ago, excluding food and energy, was assessed by investors. This is in contrast to the respective increases of 0.2% and 3% anticipated by economists polled by Dow Jones.

After Thursday's surprising strong GDP data, which showed the U.S. economy growing at an annualized rate of 3.3%, higher than expected, there was an encouraging inflation reading.

The GDP report revealed a decrease in the annual growth rate of the core personal consumption expenditures price index, which is closely monitored by the Federal Reserve for long-term inflation trends.

The Fed's goal of reducing inflation to 2% is closely being monitored by investors, who are closely watching economic data for hints on when the central bank can start cutting interest rates. According to the CME FedWatch Tool, markets are currently pricing in a 46% likelihood that the central bank will lower interest rates by a quarter percentage point in March.

According to Jeffrey Roach, chief economist at LPL Financial, the improving inflation data provides the Fed with the opportunity to cut rates this year. Nevertheless, the Fed must continue its efforts and avoid declaring "mission accomplished" prematurely.

— CNBC’s Jeff Cox contributed to this report.