What’s on the Agenda for this Week?
The three areas that have the greatest ability to impact backend pricing this week are: (1) Central Bank Palooza, (2) Domestic Flavor and (3) Stimulation Nation.
(1) Central Bank Palooza: There will be key interest rate decisions and policy statements from three of the world’s top five central banks, which include our Federal Reserve, Bank of Japan and Bank of England. Of course, our Federal Reserve will be the driving force in rates this week. While it would be a shock to expectations if any central bank made any rate moves or material changes in policy, the markets will be very sensitive to the Fed’s change in their economic projections this week.
(2) Domestic Flavor: The biggest domestic economic events this week are Retail Sales, Weekly Jobless Claims and the 20-year bond Treasury auction.
(3) Stimulation Nation: Now that the budget and $1.9T stimulus have passed, markets will continue to adjust to the forthcoming auto deposits and potential consumer spending for extended unemployment benefits ($300 per week), stimulus check ($1,400 per human living at your home), and $250 per month per child in advanced tax credits.
Manufacturing: The March NY Empire Manufacturing Index was stronger than expected (17.4 vs. estimates of 14.5).
On Deck for Tomorrow: The FOMC starts two days of meetings, Retail Sales, Import and Export Prices, Industrial Production and Capacity Utilization, NAHB Housing Market Index and the 20-year Treasury bond auction.