In other economic news, U.S. leading indicators rose 0.3% in October after a 0.5% decline in September (unrevised). This is the first increase since July. Seven of the ten components were positive. The number is a little stronger than many had been anticipating and may take a little of the steam out of the short end of the Treasury curve.
MMS says the upside for the season certainly appears to be limited, given the deterioration in consumer fundamentals, which has been exacerbated by the September 11 attacks. But, as the October retail sales data clearly imply, the consumer has remained surprisingly resilient despite recent challenges.