Wholesale Inflation Remained Pretty Tame in November

The Bureau of Labor Statistics reported this morning that its Producer Price Index rose by the expected one-tenth per-cent last month while the year-over-year pace rose to 0.8% from 0.5%. October saw a rise of 0.3% in that monthly measure. Without food and energy, core PPI grew by a less-than-expected 0.1% while the year-over-year pace rose to 1.4% from 1.1%. Analysts were expecting 1.5% for the twelve-month rate.

Treasury bond prices were already up a little bit in early trading, and still are. The Ten-Year’s yield has slipped to 89 basis points with the Long Bond yielding 1.61%. Crude oil is little changed at $46.71 as is gold at $1,838. Equities are heading toward a weak opening as Congressional stimulus negotiations don’t appear to be making much progress. Later this morning, the University of Michigan will release its preliminary December report on Consumer Sentiment.