Business Optimism Fell in November

The National Federation of Independent Businesses reported this morning that its Small Business Optimism Index fell further than expected last month. October’s index value of 104 was expected to fall to 102.5, but instead dropped even further to 101.4. Also out from the Bureau of Labor Statistics, third-quarter Nonfarm Productivity rose by 4.6% and that was slightly less than the forecast of 4.9%. For the same period, Unit Labor Costs plunged 6.6%, but that was a smaller plunge than the 8.9% drop that analysts anticipated. Later today, the Treasury will auction $56B Three-Year notes.

Overnight headlines heralding the global rise in covid cases while negotiations related to domestic fiscal stimulus seem to lack direction, have the Treasury market treading water with the Ten-Year yielding around 92 basis points as the Long Bond sits at 1.68%. Crude oil is off slightly at $45.48 while gold is little changed at $1,866.