The Week Ahead: Housing, Inflation Data Help Fill Shortened Week

By: Matthew Graham

MBS are off to an uneventful start this morning, quickly capturing back some of the losses that took them near the lows of Friday's session.  Similarly, 10yr yields bounced off a supportive ceiling in line with Friday's highs.  Stock futures were up sharply, at one point cresting the 1300 mark in S&P's, but bounced lower at the same time Treasuries put in their high yields of the morning and currently sit at 1227.5.  Here's a look at MBS Levels across the stack from MBS Live.

The fact that stock futures and bond yields are moving with strong correlation this morning speaks to the broader theme this week of a market that isn't planning on receiving much by way of earth-moving data or information.  There's a fair amount of domestic economic reports, but with many of them relating either to inflation or housing, no major market movers (of course, the eternal caveat remains that a report that deviates enough from consensus can always have an effect).  Additionally, things don't really pick up until tomorrow and to a greater extent, Thursday. 

Today's only scheduled report of any significance: NY Fed Manufacturing already printed slightly stronger than expected, but markets were pre-occupied with getting levels back in line (and inside) Friday's range as volume rapidly gets caught up following a day off yesterday.  There's no Treasury issuance, other than an inconsequential TIPS auction, no scheduled Fed speeches, and no Treasury Auctions, although next week's auction amounts will be announced on Thursday.  The week's full economic calendar follows and will be updated to include previous day's results each morning.



Period

Unit

Actual

Forecast

Prior

Tuesday, January 17




08:30

NY Fed manufacturing

Jan

--

+13.48

+11.0

+9.53

Wednesday, January 18




07:00

Mortgage market index (No Survey 12/28)

w/e

--

--

--

663.1

07:00

Mortgage market: change

w/e

%

--

--

4.5%

07:00

MBA Purchase Index

w/e

--

--

--

177.1

07:00

Mortgage refinance index

w/e

--

--

--

3560.6

07:00

Refinancing: change

w/e

%

--

--

3.3%

07:00

MBA Purchase: change

w/e

%

--

--

8.1%

07:00

MBA 30-yr mortgage rate

w/e

%

--

--

4.11%

07:00

Producer prices, core mm

Dec

%

--

0.1%

0.1%

07:00

Producer prices, core yy

Dec

%

--

2.8%

2.9%

07:00

PPI inflation yy, NSA

Dec

%

--

5.1%

5.7%

07:00

Producer prices mm

Dec

%

--

0.1%

0.3%

07:00

Overall net capital flows

Nov

bl

--

--

-48.8b

07:00

Foreign buying, T-bonds

Nov

bl

--

--

7.6b

07:00

Net L-T flows,exswaps

Nov

bl

--

--

4.8b

09:15

Capacity utilization mm

Dec

%

--

78.1%

77.8%

09:15

Industrial output mm

Dec

%

--

0.5%

-0.2%

10:00

NAHB housing market indx

Jan

--

--

21

21

Thursday, January 19




08:30

Jobless claims 4-wk avg

w/e

k

--

--

381.75

08:30

Core CPI index, sa

Dec

--

--

--

226.840

08:30

Core CPI yy, nsa

Dec

%

--

2.2

2.2

08:30

CPI mm, sa

Dec

%

--

0.1

0.0

08:30

Core CPI mm, sa

Dec

%

--

0.1%

0.2%

08:30

CPI yy, nsa

Dec

%

--

3.0%

3.4%

08:30

CPI index, nsa

Dec

--

--

225.85

226.23

08:30

Real weekly earnings mm

Dec

%

--

0.2%

-0.1%

08:30

Housing starts number mm

Dec

ml

--

.680m

.685m

08:30

House starts mm: change

Dec

%

--

<-1%

9.3%

08:30

Building permits: number

Dec

ml

--

.680m

.680m

08:30

Build permits: change mm

Dec

%

--

0%

5.6%

08:30

Initial Jobless Claims

w/e

k

--

385k

399k

08:30

Continued jobless claims

w/e

ml

--

3.603m

3.628m

10:00

Philly Fed Business Index

Jan

--

--

10.0

10.3

Friday, January 20




10:00

Existing home sales

Dec

ml

--

4.65m

4.42m

10:00

Exist. home sales % chg

Dec

%

--

+4.1%

+4.0