The Day Ahead: Mid-Tier Economic Data, Digesting EU-Related Headlines

By: Matthew Graham

The big story overnight cited an anonymous source within the IMF as saying the fund is proposing to boost its resources by $1 Trillion dollars.  Shortly thereafter, that figure was corrected to $500 billion, which was just before it was again clarified as being more appropriately $600 billion.  The point of confusion on this aspect was apparently due to sources from the IMF discussion saying the $500 bln component is for lending to member countries with another $100 bln as a "protective buffer."  The point of confusions on the intial claim of $1 trl dollar boosts was apparently due to IMF sources estimating a $1 trln global financing gap over the next two years if global economic conditions continue to deteriorate.

As one might expect, the initial "$1 trln" report helped fuel some "risk-on" type trading, favoring stocks and negative for bond markets, but the $500 bln correction along with what seems to be a burgeoning skepticism over high-dollar bailout fund increase announcements soon saw Treasuries correct back to yesterday's latest levels from the domestic session.  That has 10yr yields around 1.855 at the moment while MBS are trading 1 tick lower at 103-03 in Fannie 3.5's.  S&P futures are up 3-4 points. 

The first major economic data of the morning comes in the form of the Producer Price Index, a measure of inflation at the producer level, but with ongoing signs of inflation being relatively contained, this report hasn't had the same sort of impact that it did in the past.  Mortgage Applications surged in the MBA report earlier this morning and 10am brings the NAHB Housing Market Index

 



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

--

816.1

--

663.1

07:00

Mortgage market: change

w/e

%

23.1%

--

4.5%

07:00

MBA Purchase Index

w/e

--

195.4

--

177.1

07:00

Mortgage refinance index

w/e

--

4500.6

--

3560.6

07:00

Refinancing: change

w/e

%

26.4%

--

3.3%

07:00

MBA Purchase: change

w/e

%

10.3%

--

8.1%

07:00

MBA 30-yr mortgage rate

w/e

%

4.06%

--

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