Rates inched higher Friday following the release of mixed economic data, as a rally in stocks hurt mortgage-backed securities. This morning, December Retail Sales rose 0.6%, slightly below the consensus forecast of 0.7%. Excluding the volatile auto component, Retail Sales rose just 0.2%, well below expectations. Separately, the Producer Price Index (PPI) increased 0.3% in December, in line with forecast. The more closely-watched “Core” PPI, which excludes food and energy components, rose 0.2%, a bit more than expected. Consumer Sentiment declined unexpectedly to 98.1. No other key data will be released today.