University of Michigan Consumer Sentiment (Prelim)
The University of Michigan released their Index of Consumer Sentiment for October late this morning. It came in at 71.4, down from September’s 72.8. Forecasts were calling for an increase in sentiment that would have meant surveyed consumers felt better about their own financial situations than they did last month. The decline is a sign that consumers are not as likely to spend money as they were last month, helping to limit economic growth. Therefore, we can consider the index good news for rates. Unfortunately, traders are more focused on the sales data, preventing this index from having a favorable impact on bonds and mortgage rates.