Gary Siegel

“Service sector activity strengthened in November, boosted by improvement in the retail subsector,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.

“Manufacturing activity in the central Atlantic region stabilized in November following four months of contraction,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond.

Although economic growth was “somewhat stronger” than when they last met, labor markets remained weak, leading the Federal Open Market Committee to keep its policy the same, according to minutes of its Nov. 1-2 meeting.

Public contingency planning should be part of the Federal Reserve’s strategy going forward, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota reiterated Tuesday.

The Treasury Department auctioned $35 billion of five-year notes, with a 7/8% coupon, a 0.937% high yield, a price of 99.697840.

The Treasury Department Tuesday auctioned $35 billion of four-week bills at a 0.020% high yield, a price of 99.998500.

“Manufacturing activity in the central Atlantic region stabilized in November following four months of contraction,” according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond. “The index of overall activity steadied as a slightly positive reading for shipments offset a slight decrease in new orders and a flat reading in employment. Modest improvement was also evident in most other indicators. District contacts reported continuing moderate weakness in backlogs, but noted that capacity utilization edged lower. Delivery times grew at a somewhat quicker pace, while inventories grew at a slightly slower rate.”

“Service sector activity strengthened in November, boosted by improvement in the retail sub-sector,” according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday, “Revenues at services-providing firms were nearly flat this month, but retail sales jumped and foot traffic rose sharply. Big-ticket sales were flat, however. Retail inventories expanded and merchants were upbeat about potential sales during the next six months. Services providers remained optimistic about revenues in the six months ahead, though their outlook was somewhat less enthusiastic than in October.”

Tender rates for the Treasury Department’s latest 90-day and 181-day discount bills were higher Monday. The three-months incurred a 0.015% high rate, up from 0.010% the week before, and the six-months incurred a 0.050% high rate, up from 0.040%.

The Treasury Department Monday auctioned $35 billion of two-year notes with a 1/4% coupon at a 0.280% yield and a price of 99.940209.

The Chicago Fed National Activity Index for October narrowed to negative 0.13 from a revised negative 0.20 reading in September, while the three-month moving average (CFNAI-MA3) dropped to negative 0.27 in September, from October’s revised negative 0.16, the Federal Reserve Bank of Chicago reported Monday.

Existing home sales increased 1.4% in October to a seasonally adjusted 4.97 million-unit rate, after a downwardly revised 4.90 million unit rate in September, the National Association of Realtors announced Monday.

The Treasury Department today auctioned $35 billion of two-year notes with a 1/4% coupon at a 0.280% yield, a price of 99.940209.

Tender rates for the Treasury Department’s latest 90-day and 181-day discount bills were higher, as the three-months incurred a 0.015% high rate, up from 0.010% the prior week, and the six-months incurred a 0.050% high rate, up from 0.040% the week before.

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

Existing home sales increased 1.4% in October to a seasonally adjusted 4.97 million-unit rate, after a downwardly revised 4.90 million unit rate in September, the National Association of Realtors announced Monday.

The Chicago Fed National Activity Index for October narrowed to negative 0.13 from a revised negative 0.20 reading in September, while the three-month moving average (CFNAI-MA3) dropped to negative 0.27 in September, from October’s revised negative 0.16, the Federal Reserve Bank of Chicago reported Monday.

The composite index of leading economic indicators soared 0.9% in October, the Conference Board reported Friday.

The unemployment rate will remain above 7% for the next three years and the country won’t be at “maximum employment until 2016,” Federal Reserve Bank of San Francisco president and chief executive John C. Williams said Friday.

The unemployment rate will remain above 7% for the next three years and the country won’t be at “maximum employment until 2016,” Federal Reserve Bank of San Francisco President and CEO John C. Williams said Friday.