Gary Siegel

Texas service sector activity slowed in September, according to business executives responding to the Texas Service Sector Outlook Survey, as the revenue index slid to 8.9 from 13.6.

The overall economy grew for the fifty-second straight time, while the manufacturing sector expanded for the fourth consecutive month, the Institute for Supply Management reported Tuesday.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were lower, as the three-months incurred a 0.010% high rate, off from 0.020% the prior week, and the six-months incurred a 0.040% high rate, down from 0.050% the week before.

The Treasury Department said it will auction $20 billion 7-day cash management bills on Wednesday, October 2.

The Treasury Department said Monday it will sell $35 billion of four-week discount bills Tuesday.

Texas factory activity, as measured by the production index, "expanded in September," according to the monthly business activity survey conducted by the Federal Reserve Bank of Dallas, released Monday.

The Chicago Purchasing Managers' Business Barometer gained to 55.7 in September from 53.0 in August, the National Association of Purchasing Management-Chicago said Monday.

The seasonally adjusted Milwaukee Report on Business surged to 55.0 in September from 48.2 in August, the Institute for Supply Management-Milwaukee reported Monday.

The Midwest Economy Index surged to positive 0.41 in August from a revised positive 0.22 in July, first reported as positive 0.25, the Federal Reserve Bank of Chicago reported Monday.

The Chicago Fed Midwest Manufacturing Index surged 1.5% in August to a seasonally adjusted level of 96.7, as three of the four regional sectors improved, the Federal Reserve Bank of Chicago reported Monday.

The Treasury Department auctioned $35 billion of five-year notes, with a 1 3/8% coupon, a 1.436% high yield, a price of 99.706706.

The Treasury Department Tuesday auctioned $33 billion of two-year notes with a 1/4% coupon at a 0.348% yield, a price of 99.804850.

The Treasury Department Tuesday auctioned $35 billion of four-week bills at a 0.015% high yield, a price of 99.998833.

Service sector activity "grew at a moderate pace in September," according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.

Manufacturing activity in the central Atlantic region "was little changed in September," according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index dropped to zero from 14 in August.

The consumer confidence index decreased to 79.7 in September from a revised 81.8 last month, The Conference Board reported Tuesday.

The Federal Open Market Committee should have voted to taper its asset purchases at its meeting last week, according to Federal Reserve Bank of Dallas President and CEO Richard W. Fisher.

Tender rates for the Treasury Department's latest 91-day and 182-day discount bills were higher, as the three-months incurred a 0.020% high rate, up from 0.010% the prior week, and the six-months incurred a 0.050% high rate, up from 0.030% the week before.

Although the labor markets have been improving the nation has yet to reach maximum employment, Federal Reserve Bank of Atlanta President and Chief Executive Officer Dennis Lockhart said Monday.

The unemployment rate decline "overstates" the improvement in the jobs sector and the economy's "forward momentum" has yet to show enough strength to indicate it can support job growth, so the time is not right for the Fed to taper, Federal Reserve Bank of New York President and Chief Executive Officer William C. Dudley said Monday.