U.S. Treasury yields fell on Friday after retail sales data for April showed no growth after a big jump in March.

The yield on the benchmark 10-year Treasury note slipped to 1.645% in afternoon trading, while the yield on the 30-year Treasury bond dipped to 2.371%. Yields move inversely to prices.

Yields were weaker ahead of the retail sales report and then fell further once it hit. Economists surveyed by Dow Jones had penciled in a rise of 1%.

Yields eased back after having spiked following a higher-than-expected inflation reading on Wednesday. April's Consumer Price Index rose 4.2%, its biggest year-on-year increase since 2008 and well above the 3.6% expected by economists.

However, Treasury yields shook off Thursday's higher-than-expected Producer Price Index reading, a more indirect indicator of inflation. April's PPI rose 0.6% on the previous month, above the 0.3% expected growth and jumped 6.2% year-on-year, well above a forecast of 3.8%.

Mike Gallagher, managing director of macro and strategy at Continuum Economics, told CNBC's "Squawk Box Europe" on Friday that year-on-year inflation index figures were "perhaps a little bit misleading."

Instead, he focused on the monthly CPI and Personal Consumption Expenditures price index figures.

While the Federal Reserve has insisted a rise in inflation is transitory, Gallagher said if the central bank is wrong "then the market, particularly the bond market, will be demanding that the Fed moves somewhat earlier" to change its easy policy.

"We're not at that point yet," he added.

Industrial production in April rose 0.7%, according to the a report from the Fed released on Friday. Economists surveyed by Dow Jones were expecting a rise of 0.8%. Meanwhile, the University of Michigan's Survey of Consumers showed that consumer confidence declined in early May as inflation expectations rose.