Houston's Rate Sheet

Treasury Yields go down with Consumer Spending

Bloomberg.com reports that treasury prices (prices and yields/interest rates move in opposite directions) are up after the Retail Sales report showed that consumer spending might be waning. According to the Commerce Department report, retail sales dropped 1.3 percent last month, compared with a gain of 2.9 percent in January. The decline in consumer spending alleviates some of the market's concerns over inflation. The yield on the 10-year note fell 2 basis points, to 4.74 percent by 8:54 a.m. Consumer spending's decline is not and established trend. New information in other areas could easily push yields back up. I'll keep you apprised of developments.

posted by Vincent Biondillo @ 10:38 AM