Rates were little changed Friday as mortgage-backed securities (MBS) markets have reversed some of yesterday’s losses. In economic news, the Core PCE price index, the Fed’s preferred measure of inflation, increased at a low 1.2% annual rate. April Personal Income rose 0.4%, while spending was flat. May Consumer Sentiment came in at 73.6, beating expectations. The Chicago Purchasing Managers manufacturing index fell to 59.7, below forecast. The most important data due out next week will be Friday’s Employment Report for May. MBS markets are likely to continue being driven by developments in the European debt crisis.