September's Retail Sales report was released at 8:30 AM ET this morning, revealing a 0.1% increase in retail-level sales from August. This was well below forecasts of a 0.6% increase, meaning consumers spent much less last month than many had expected. That is very good news for bonds and mortgage rates because consumer spending makes up approximately 70% of the U.S. economy. Weaker than expected consumer spending means the economy may not be as strong as predicted, making mortgage-related bonds more appealing to investors. Oddly though, we have seen a minimal reaction in bonds when a more favorable move is justified.