Rates held steady Friday in spite of higher than expected inflation data. This morning, the April Consumer Price Index (CPI) rose 0.1%, matching forecast, but Core CPI, which excludes volatile food and energy components, jumped 0.3%, the largest monthly increase since January 2013. Core CPI was 1.8% higher than one year ago, slightly below the Fed target rate for inflation of 2.0%. Federal Reserve Chairwoman Janet Yellen will be speaking at 1:00 PM. Market volume will be lighter than usual ahead of the holiday weekend, meaning Yellen’s comments could result in greater volatility. Mortgage-backed securities markets will close today at 2:00 PM.