The CPI and index of consumer sentiment:
8:30: Consumer Price Index (April): Higher core. We expect another unfriendly CPI report this month. Specifically, we forecast that the all-items CPI rose by 0.39% mom in April, and that the core increased by 0.19% mom. Our forecast for an acceleration in the core (after a gain of 0.14% in March) primarily reflects higher apparel and medical care inflation. If our forecast is correct, year-over-year growth in the core CPI would rise to 1.3%
On headline, GS: +0.39%; median forecast (of 76): +0.4%; last +0.55%.
On core, GS: +0.19%; median forecast (of 77): +0.2%; last +0.14%.
10:00 (9:55 to subscribers): Reuters/University of Michigan consumer sentiment (May prelim): Still low. The consensus expects the index of consumer sentiment to remain about unchanged at relatively low levels. This report’s measure of longer-term inflation expectations declined to 2.9% in April from 3.2% in March.
Median forecast (of 62): 70.0; last 69.8 (April final).
11:00: Today's POMO is $6-8 billion of 05/15/2018-02/15/2021 maturities
from GS and ZH