Forget This Week. Here Comes The Data!

Friday saw bonds give up the post-Fed gains, because the post-Fed gains were incidental. Between the well-telegraphed rate cut, lack of meaty econ data, and equivocal dot plot, the present week's absence of new momentum is both logical and forgettable. Next week could be a different story. Not only will we finally get the Nov jobs report on Tuesday, we'll also get October Retail Sales (Tue) and November CPI (Thu). Whereas the Fed was almost wholly incapable of offering any meaningful surprises, the upcoming data could easily combine to push bonds out of their recent range, or back toward the lower boundary.