Retail Sales Fall Further Than Expected

The Census Bureau just reported that Retail Sales in November fell 1.1% and that was a bigger fall than the 0.3% decline that was forecast. As if that wasn’t bad enough, October’s growth of 0.3% was revised to a decline of 0.1%. Without Autos, Sales fell 0.9% against an expected rise of 0.1%. The October value for this metric was revised to down 0.1% from a previously reported gain of 0.2%. Core Retail Sales, without autos, gas stations, food, and building materials, fell by 0.5% versus an anticipated growth of 0.2%. October’s core growth was revised from a 0.1% rise to a 0.1% drop. Earlier, the Mortgage Bankers Association reported that applications for the week ending December 11th rose by 1.1% after falling 1.2% the previous week.

Prior to this morning’s disappointing report, Treasury prices were already a bit lower and that hasn’t changed much. The yield on the Ten-Year has edged up to 94 basis points with the Long Bond perched just below 1.70%. The Two-Year is pretty steady at around 12 basis points. Crude oil is little changed at $47.58 with gold up slightly to $1,851. The FOMC wraps up its meeting today with the Chairman’s Press Conference scheduled for early afternoon. Congressional leaders are also reportedly back at it this morning as hopeful talks for a fiscal deal continue.