Permanent Value

Week in Review 11/25/13

Bruce Doole
November 25th, 2013

THIS WEEK’S ECONOMIC DATA

  • Consumer prices declined 0.1% in October, the first fall in six months.
  •  Retail sales increased 0.4% in October, the most in three months, boosting the holiday sales outlook.
  • Sales of existing homes fell 3.2% in October, the fewest since June, based on limited supply and slightly higher mortgage rates.
  • Jobless claims dropped 21,000 to total 323,000 in the week ended Nov. 16, the fewest since late September.
  • Producer prices fell 0.2% in October, the second straight month of a decline, reflecting cheaper energy costs.

Fixed Income

U.S. Treasuries rose as the week came to a close. Yields on 10-year notes were at the highest levels in two months, attracting buyers amid speculation the Federal Reserve may not start “tapering” its bond purchases until next year. The yield difference between five- and 10-year notes narrowed after reaching the widest spread in two years on Thursday. Yields accounting for inflation were almost the highest in more than two years as bond rates increased while consumer prices remained subdued. The Fed has said it will keep short-term rates at almost zero at least as long as unemployment is above 6.5% and the forecast for inflation is below 2.5%. The jobless rate in October was 7.3%.

 

Source: Ivy Weekly