Fixed income markets were relatively quiet this week as yields ended the holiday-shortened week only slightly changed from last Friday's levels. Positive news was reported on the trade front, as the U.S. and China reportedly reached a partial trade agreement which could forestall additional tariff increases.
Economic releases were not as bullish, as a drop in September's retail sales raised fears the consumer spending could slow, edging the U.S. economy closer to a recession. Manufacturing data wasn't much better as industrial production declined during the month, largely (but not entirely) due to the GM strike. The housing market managed to report some good news, as single-family housing starts and building permits both rose.
Against this mixed backdrop, the Federal Reserve's next meeting at the end of the month is expected to result in another 25 bps cut to the Fed funds target rate.