Up at 2.54% earlier this morning, the 10-year Treasury yield retreats to 2.48% following weaker-than-expected prints from Case-Shiller, Chicago PMI, and Consumer Confidence.
Of Consumer Confidence - which dropped to 86 in September from 93.4 - The Conference Board's Lynn Franco notes a recent softening in economic growth and less positive assessment of the job market (did anybody tell the Fed?). The Expectations Index fell to 83.7 from 93.1.
At his Delphic best this morning, leading Fed dove Charles Evans tells CNBC it will be "quite some time" until the FOMC tightens policy, and then suggests June 2015 as the date of the first rate hike, though a delay until after that is a possibility.
It's important, says Evans, to see 2% inflation on a sustainable basis.
“The US economy is enjoying its strongest spell of growth since the financial crisis, according to the PMI surveys. Although the pace of expansion slowed to a four-month low in services in September, the rate remained buoyant and accompanies a similar boom seen in manufacturing", said Williamson.