Overview:  Consumer credit increased $3.4 billion to $2.399 trillion in October.  The U.S. trade balance narrowed $5.9 billion to $38.7 billion in October.  The U.S. Treasury recorded a deficit of $150 billion in November.  The 10-year Treasury rate closed the week up 29 basis points.  Initial jobless claims fell by 17,000 to a level of 421,000 for the week ended 12/4.

Consumer credit rose by $3.4 billion to $2.399 trillion in October. This marks the second monthly rise in credit following a record 19-month decline. From July 2008 to August 2010, credit declined by a record $187 billion.

The U.S. trade balance narrowed by a greater-than-expected $5.9 billion to $38.7 billion in October.  Exports were up $4.9 billion and imports were down $0.9 billion.

The U.S. Treasury reported a larger than anticipated deficit of $150.4 billion in November. On a year-over-year basis, the index was up 0.6%.

The 10-year Treasury rate has been on the rise and closed the week up 29 basis points to 3.32% (see first chart below). Since the Fed announced a second round of quantitative easing on November 3^rd (a move intended to bring down interest rates), the 10 year Treasury rate has risen 65 basis points and the 3-year Treasury rate has risen 54 basis points.

Initial jobless claims fell by 17,000 to 421,000 for the week ended December 4^th.