Rates inched higher Friday following the release of better than expected economic data. December Retail Sales rose 1.3%, well above the consensus forecast of +0.6%. Consumer Sentiment rose to 73.4 from 67.4 last month. A reading of 68.5 had been expected. Yesterday the House passed a huge spending bill that projects a record $1.5 trillion deficit next year, adding to investors’ concerns over government debt supply. Mortgage-backed securities may be volatile next week. The Producer Price Index (PPI) and Industrial Production will be released Tuesday. The Consumer Price Index (CPI) will come out Wednesday. The Fed will also hold its last FOMC meeting of the year on Wednesday. No other economic data will be released today.