|07:00||MBA mortgage prch. index||Substantial seasonal increase in latest week|
|08:30||Durable goods||Sharp aircraft-led decline expected|
|08:30||Jobless claims||Little change expected in latest week|
|10:00||U. Michigan cons. sent., late||Final November level close to preliminary reading|
|10:00||Existing home sales||Partial rebound expected in October|
|10:00||Leading indicators||Marginal increase of 0.1% expected in October|
|11:00||3- and 6-month bill announcement||Expected to be unchanged at $42 and $36 billion|
|11:00||2-, 5-, 7-yr, and 2-yr FRN (r) note announcement||$1 billion increases across the board|
|11:30||10-yr TIPS (r) auction||$11 billion offering|
|Reserve maint. period ends|
The aircraft sector is likely to pull overall durable goods orders down in this morning’s October report. Initial claims seem likely to hold roughly steady in the latest weekly unemployment insurance data, and we expect a small downtick in continuing claims. We look for a partial rebound in October existing home sales following a weak September result, but inventory and affordability issues are likely to persist. Our assumption is that the headline index in the University of Michigan’s consumer sentiment report will stay near the early-November print of 98.3. However, the inflation indexes may soften a bit from their preliminary readings.
Today’s bill announcements: 3- and 6-month bills
Today’s coupons announcements: 2-, 5- and 7-year notes; 2-year FRN reopening
Today’s coupon auction: 10-year TIPS reopening
This issue of the Money Market Observer is a short read for a short week. It includes our regular monthly chartbook of money fund repo positions along with some observations about the ongoing diversification of the money fund industry’s collection of repo counterparties.