Economic data were generally in line with expectations. It showed that the recovery continued at a snail's pace in October. Preliminary November data are favorable with respect to the manufacturing sector, but one month doesn't make a trend. The federal budget deficit was in line with the most pessimistic expectations. Experts are looking for the worst budget deficit in a decade this fiscal year. A large federal budget deficit leads to greater government borrowing - and that leads to a greater supply of Treasury securities.