US RATE FUTURES-Mixed after weak U Mich sentiment

CHICAGO, May 16 (Reuters) - U.S. short-term interest rate futures were mixed on Friday after a key reading on consumer sentiment was weaker than expected in early May.

Futures FFN8 FFZ8 EDM8 raised the implied prospect for a Federal Reserve rate cut in June to 12 percent from 6 percent but are pointing to rate increases in the final quarter of 2008. A 25 basis-point hike is fully priced by the December Fed meeting.

The Reuters/University of Michigan consumer sentiment index fell to 59.5 in May from 62.6, against forecasts of 62.0. (Reporting by Ros Krasny; Editing by James Dalgleish)