The Day Ahead: Light Data Calendar, Bernanke in the Afternoon

The holiday-shortened week continues in similar fashion today as yesterday: with not much on the agenda.  Monday's few pieces of economic data helped edify the theme of the week in that both of them were better-than-expected, yet markets didn't much care.  If the week so far is any indication, it seems clear that bond market participants see the next few days as a better-than-usual opportunity to tune out or duck out compared to the average Thanksgiving week.  Volumes were light and even the unexpected headlines--the kind we were expecting/hoping to help guide the pace--were scarcely noticeable.

There's only one piece of scheduled economic data on Tuesday--well--TWO, if you count both the "Housing Starts" and "Building Permits" components of the Housing Starts report.  Both are expected to show declines for October with Housing Starts seen down to 850k from 872k and Building Permits down to 865k from 890k.  The weaker expectations are due, in part, to the anticipated effects of Hurricane Sandy.  Apart from economic data, markets may catch a whiff of what the Fed has cookin' to replace the Operation Twist purchases which they've essentially already said would likely be extended in 2013.