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(CEP News) - On Tuesday, markets will focus on April's U.S. durable goods. The U.S. Treasury's new two-year note auction will also garner market attention, as will two Fed speakers.
The day is light for Canadian data, but markets will focus on more second-quarter bank earnings, with announcements from TD Bank and Laurentian Bank. Looking at the U.S. data, durable goods orders, excluding transportation, are expected to decrease 0.5% following March's rise of 0.9%, revised down from 1.5%. The headline data is expected to fall 1.5% following March's 0.3% fall. Guy LeBas, fixed income strategist from Janny Montgomery Scott, said their outlook on the U.S. economy isn't very good and he is expecting a weaker reading in the durable goods report. He is forecasting a fall of 2.0% in durable goods. "We expect that real household spending in the longer-term is going to be sustainably reduced," he said. He added it is hard to predict the market's reaction to Wednesday's data. He pointed out treasuries sold off on weak data on Tuesday and that there is a trend to push yields higher. "It could be that a lot of bad news is already priced into the markets. Because durable goods aren't a major indicator, a softer print could be ignored by the markets," he said. Looking at Wednesday's treasury auction, LeBas said, the current yields are attractive and he is expecting some interest in two-year notes. Two Fed members are also expected to speak on Tuesday. Gary Stern, president of the Minneapolis Fed, will speak on the economy at an event in Eau Claire, Wisconsin. In the evening, Richard Fisher, Dallas Fed President, will speak on inflation and debt in San Francisco. All times in EDT: Wednesday: 7:00 US MBA Mortgage Applications W/E 23-May Prior: -7.8% 7:45 US ICSC Chain Store Sales week ending May 25 Prior: 8:30 US Durable Goods Orders April Exp: -1.5% Prior: -0.3% 8:30 US Durables Ex Transportation April Exp: -0.5% Prior: +1.5% 8:30 CA International Travel Account 8:30 CA Characteristics of International Travelers 8:55 US Redbook Retail Sales week ending May 25 Prior 9:00 US TSY's Steel to speak on Subprime Lending in Washington, D.C. 10:00 US Metro Area Employment and Unemployment 10:30 CA BOC to Sell $8.25B in Treasury Bills 11:30 US Treasury to Sell $27B in 4-Week Bills 12:00 CA BOC to Sell 6B in Real Return Bonds 12:50 US Fed's Stern (voter) Speaks on U.S. Economy in Eau Claire, Wisconsin 13:00 US Treasury to Sell $30B 2-Year Notes 21:00 US Fed's Fisher (voter) Speaks on Inflation and Debt in San Francisco 28- May CA TD Bank Q2 Earnings 28- May CA Laurentian Q2 Earnings By Neils Christensen,
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