Rates held steady Thursday as mortgage-backed securities recovered from yesterdays losses on weaker than expected economic data. This morning, the July Core PCE price index, the Fed’s preferred measure of inflation, was unchanged from June and was 1.6% higher than one year ago. Both readings were below forecast. Weekly Jobless Claims were unchanged from last week’s upwardly revised figures at 374,000, slightly above expectations. Personal Income rose 0.3%, matching forecast. Results from today’s 7-year Treasury auction will be released at 1:00 PM.