This week nothing is more important that the election on Tuesday. With most polls indicating that the election is essentially too close to call, the US and global financial markets will likely trade quietly Monday and Tuesday. Wednesday, if the results are known it is difficult to say how markets will take it. There is one key data point Monday, the Oct ISM services index, expected at 55.0 frm 55.1. Last week the ISM manufacturing index was better than what had been thought. The week doesn’t have much in the way of critical data other than weekly jobless claims on Thursday, even that isn’t likely to get much attention with markets still adjusting to the election results.
Treasury will auction a total of $72B of notes and bonds beginning Tuesday with $32B of 3 yr notes, Wednesday $24B of 10 yr notes and Thursday $16B of 30 yr bonds. Recent Treasury auctions have seen mixed results on demand; two weeks ago the auctions didn’t see the demand that had been strong the previous few months. In Europe Greece is back on top of the headlines, struggling to achieve the requirements for another bailout. With the election this week Europe won’t get the attention that it might in a normal week.