U.S. Treasury debt prices were flat to a touch lower on Friday after widely anticipated inflation data came in much as expected, doing little to alter the Federal Reserve's plan to slowly raise interest rates. The core personal consumption expenditures index, or core PCE, the Fed's favored inflation measure, rose 0.1 percent in April, exactly what economists had expected. "The data does not tell us anything terribly fresh on the economy, although the softer trend in real disposable income deserves special monitoring," said Alan Ruskin, research director at 4CAST in New York referring to the 0.1 percent growth in disposable income in April. It was flat in March. The 10-year note was about flat after briefly ticking higher immediately following the release of the data. It was yielding 4.08 percent, exactly where it ended Thursday's session. The two-year note, the note most sensitive to shifts in the interest rate outlook, was down 1/32 and yielding 3.65 percent, after ending the day on Thursday at 3.64 percent. The five year note was also down 1/32 and yielding 3.83 percent, while the 30-year bond was flat, to yield 4.43 percent. "The PCE and disposable income data are on balance marginally bond friendly, and mildly dollar negative, but on a day before the long week-end, this second tier data will have little sustained impact," Ruskin added. Many traders agreed that action will probably be relatively light on the eve of the three-day U.S. Memorial Day holiday weekend. The Commerce Department data also showed real consumer spending growing at 0.2 percent in April, but at a slower rate than in March. However, the March data were revised upward.