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US Trade Deficit Widens
11/13/2009
The US trade deficit widened in September by the most in a decade due to the demand for oil as the economy started to rebound. Congress will need to approve an increase in the national debt limit from the current mark of $12.1T; currently, the debt is pushing $12T and the Obama administration is looking for an $1T to $1.5T increase. Right now, the futures market is pricing in an 81% chance that the Fed keeps rates somewhere between 0% and .25% through March 16th, 2010. Currently, the Ten Year yield is at 3.46% (3.49% on Tuesday) and the 2-10 yield spread is at 262bps, flattening 3bps since yesterday morning.
