This will be a relatively busy week for economic data and scheduled events. No single item stands out as an epic potential market mover, but the team effort looks solid.
At stake is the ongoing post-FOMC question: to bounce, or not to bounce. Trading levels continue to operate near the levels seen before last week’s much-anticipated FOMC Announcement.
More importantly, those levels marked the culmination of an aggressive selling-spree leading up to the FOMC Announcement. The two days that followed got us back to pre-FOMC levels, but we’re still waiting to see if a broader bounce takes shape.
A good line in the sand to watch is 2.555 in 10yr yields. There were two good bounces there before the FOMC Announcement and overnight Treasury trading bounced at 2.553 during Asian hours.