The benchmark 10-year Treasury notes were yielding 4.48%, after having dipped briefly to 4.429% from an earlier 4.483%. The 30-year bond was yielding 4.71%, after having dipped to 4.659% from an earlier 4.708%. Yields rise when demand falls.
The core September Consumer Price Index, which excludes energy and food, rose only 0.1% -- the same as in August. Still, the overall CPI rose 1.2%, up from 0.5 % in August, as energy prices surged 12.0% due to supply shortages related to Hurricanes Katrina and Rita. The August CPI rose 0.5% as energy prices rose 5.0%.
U.S. Retail Sales rose 0.2% in September after falling 1.9% in August, which was revised from -2.1%. Real Earnings fell 1.2% in September after sliding 0.5% in August.
September Industrial Production plunged 1.3%, the largest decrease since 1.9% in January 1982. The University of Michigan's Consumer Sentiment Index fell to 75.4 in mid-October from 76.9 in September. U.S. Business Inventories rose 0.4% in August from a 0.4% decline in July, which was revised from -0.5%.