What’s on the Agenda for this Week?
The three areas that have the greatest ability to impact backend pricing this week are: (1) The Talking Fed, (2) Services and (3) Inflation Nation.
(1) The Talking Fed: Several key members of the Federal Reserve will speak this week, including Chairman Powell and Ex Chair and current Treasury Secretary Yellen. The bond market will be very sensitive to commentary related to inflation and rates. Here is this week’s schedule:
04/05: Treasury Secretary Yellen
04/07 Evans, Barkin, Minutes from last FOMC Meeting
04/08 Bullard, Fed Chair Powell, Fed’s Balance Sheet
(2) Services: There was a huge jump in jobs last Friday in the Services sector. Monday’s ISM Services PMI will get a lot of attention from traders as this represents 2/3 of our economy.
(3) Inflation Nation: Friday’s Producer Price Index (PPI) has been steadily growing but has yet to spill over into the Consumer Prices. However, that cannot last and it’s expected that the YOY Core number could reach a very hot 2.7%.