Industrial Production

Production and utilization data near expectations, which was up 0.7%

Consumer Price Index Report

CPI near expectations (up 0.4%, 0.1%, x 0.3%, 0.1%), bond traders pleased data did not shock like PPI yesterday

Producer Price Index and Retail Sales

PPI up 1.7%, core up 0.2%, expected up 0.8%, 0.1%--Retail sales up 2.7%, expected up 1.9%, data not bond friendly. Rates will go up a little.

3-Year Treasury Auction

Today's $38 billion 3 year note auction went well. All eyes will be on the 10 year note auction tomorrow.

Employment Data for September 3, 2009

Jobs down 216k, unemployment at 9.7%, expected –230k, 9.5%, data split.

Expect rates to go into the usual "long week-end" mode.

ADP Employment Report

In news released this morning, the ADP payroll estimate indicated the US economy shed 298,000 jobs last month. That data was weaker than expectations for a decline of 250,000 jobs. This report is known for wide misses from the BLS report scheduled for release Friday.

Fed Minutes

Fed Said: Economy slowly improving, low inflation, no need to expand or cut lending programs, will keep rates low for extended period, labor market remains a concern,

Factory Orders

Factory orders data was released weaker than expected. Analysts were expecting orders to rise 2.1%, however orders only rose 1.3%. That data was bond friendly.

Revised Q2 Productivity

In other news, Q2 productivity rose 6.6%, better than expectations for an increase of 6.4%. Increased productivity allows companies to produce more units of output with the same input. This keeps costs low and helps to cap inflation fears. This is the highest reading since 2003.

ADP Employment Report

In news released this morning, the ADP payroll estimate indicated the US economy shed 298,000 jobs last month. That data was weaker than expectations for a decline of 250,000 jobs. This report is known for wide misses from the BLS report scheduled for release Friday.

ISM Index

In news released this morning, the Institute for Supply Management (ISM) report, an indication of manufacturing strength, stood at 52.9, better than expectations for ISM to stand at 50.5. This is the first time since January 2008 the report stood above 50.